Small Cap Feast

Small Cap Feast – 05 October 2016

Dish of the Day:

No AIM Primary Today

Off the Menu:

Pinewood Group  (PWS.L) delisted from AIM following a recommended cash offer

What’s Cooking in the IPO Kitchen?

Premier Asset Management— the retail asset management group has raised £63.7m at  132p and is due to join AIM on 7 October.

ConvaTec — The medical products manufacturer is expected to announce a planned London IPO according to City A.M. Other reports suggest a valuation of circa £5 billion.

O2—Press reports that Telefonica will bring O2 to the LSE this year with a large retail offer. This has not yet been confirmed

Biffa— Intention to float announcement states that up to £270m  is to be raised to pay down debt and historic landfill tax liability.

 

Breakfast Buffet

Ace Liberty & Stone* (ISDX:ALSP) 4p £39.3m

FY Apr 2016 results from the ISDX listed active property investment company, capitalising on commercial property investment opportunities across the UK. Property holdings up 23% to £29.5m. Revenue up 70% to £2m. Disposal activity has been slow impacting profitability but there are now signs that this hesitancy on the part of purchasers is weakening. Separately ALSP announced the £9m purchase of 1-5 Upper Market Square Hanley for £9m. The property is let on a long term basis to  Boots and NatWest.

 

DP Poland (DPP.L) 48.63p £63.3m

The operator of the Domino’s Pizza Poland Franchise has announced a proposed £3.2m placing at 48p, a 1.3% discount to yesterday’s close. The net proceeds of the Placing are expected to provide the Company with the funds required to open an additional 20 stores, over and above current market expectations, by 2020.  FYDEC16E forecasts £6m of revenue and a £2.1m pre-tax loss.

 

Time Out Group (TMO.L) 135.5p £176.15m

The global multi-platform media and e-commerce business with food & cultural markets, announced that it has signed a lease for a new Time Out Market in the iconic São Bento train station in Porto, Portugal.  This will be the second Time Out Market, following the success of the Group’s flagship market in Lisbon which opened in May 2014. In the first six months of 2016, the Lisbon market reported strong YoY pro-forma revenue growth of 106%, record levels of visitors (1.3 million) and has been EBITDA positive in each month of the current  year.

 

Fusionex (FXI.L) 166.5p £78.75m

The international software solutions provider specialising in Analytics, Big Data and the Internet of Things, has won a million-dollar contract with one of the world’s largest providers of digital media and brand intelligence. This is the latest significant win for Fusionex’s next generation Big Data platform, Fusionex GIANT 2016 and a further pleasing endorsement of the Group’s market-leading Big Data proposition.  FY SEP16E forecasts of £17m revenue and a £1.49m pre-tax loss.

Premier African Minerals (PREM.L) p £m

The mining exploration and production company, announced that a review of immediately available tungsten rich material at its RHA Tungsten Operations in Zimbabwe has been completed. This shows that there is sufficient tonnage immediately available both in the open pit and underground operations to support an initial 3 years’ of operations at 39,000 tons per month once the proposed use of X-Ray Transmission system for ore sorting has been installed at RHA’s ore processing plant. Target date for installation is the end of November this year.

 

Gooch & Housego (GHH.L) 989p £235.74m

FY Sep trading update from, the specialist manufacturer of optical components & systems. In line with its previous guidance. Since June demand for industrial lasers has strengthened further  in parallel with record orders for fibre based product. Robust order book, which, as at 30 September 2016, stood at £52.8 million, an increase of 45.5% compared with the same time last year. Excluding the impact of acquisitions this represents an increase of 10.5%.  FY16E revenues £83.4m, EPS 40.47p, dividend 8.97p. 24.4x  PE. 0.9% yield.

 

OptiBiotix Health (OPTI.L) 65p £50.8m

The life science business developing compounds to tackle obesity, high cholesterol, diabetes and skin care, announces the appointment of Martin Hunt as Chairman and Director of its majority owned subsidiary SkinBiotix Limited.  Strong experience in life sciences and both the public and private sector. Optibiotix plans to demerge its SkinBiotix division and seek an Initial Public Offering. The technology addresses multi billion dollar markets but is still in the early stages of development.

 

Park Group (PKG.L) 67p £123m

The multi-retailer gift voucher and prepaid gift card business focused on the corporate and consumer markets, has acquired the corporate employee and customer engagement specialists, Fisher Moy International Ltd. (“FMI”), for an undisclosed all-cash sum.  FMI is profitable, debt-free and the acquisition should be modestly earnings enhancing for Park in the first full year of ownership. FMI will initially continue to operate under its existing brand and will remain at its current offices in Buckinghamshire, acting as an additional geographic presence for the sales team.

 

Kodal Minerals (KOD.L) 0.1p £4.55m

The mineral exploration and development company with interests in West Africa, has received the results of the wide-spaced surface geochemical sampling programme recently completed at its 100% owned Korhogo Project  located in northern Cote d’Ivoire.  Surface geochemical sampling has returned four new gold anomalous zones with assay values up to 92 parts per billion (“ppb”) Au and strike lengths exceeding 3.5km .

SafeCharge Internantional Group(SCH.L) 217.5 p £328m

The provider of advanced payment technologies notes the announcement regarding Sisal.it (“Sisal”), the online gaming platform of the Italian group operating in the Gaming and Payment Services sector, which has  selected SafeCharge to facilitate players’ deposit and withdrawal journey, fraud prevention, cards acquiring and alternative payments acceptance for the Italian market. This is the latest in a string of Tier One customer launches. FY Dec 16E revenues of £80.9m. EPS 15.45p. Dividend 12.56p. PE 14x Yield 5.7%

Head Chef:

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

*A corporate client of Hybridan LLP

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