Small Cap Feast

Small Cap Feast – 08 March 2017

Dish of the Day:

No AIM Joiners Today

Off the Menu:

No AIM Leavers Today

What’s Cooking in the IPO Kitchen?

Ocelot Partners—Intention to join the Standard List. Has raised $425m  at $10 for acquisition purposes. Focussing on European TMT prospects

BiopPharmma Credit—Targeting $300m + raise on LSE. “This investment trust will give investors access to debt investments tied to the fast growing life sciences industry, offering predictable cash flows over a sustained period of time.” Admission due 27 Mar.

Tufton Oceanic Assets –The Company intends to invest in a diversified portfolio of second hand commercial sea-going vessels where the Investment Manager believes that an attractive opportunity exists in shipping. $150m raise. Admission 3 April.


Breakfast Buffet

Europa Oil & Gas Hldgs(EOG.L) 5.87p £14.39m

The UK and Ireland focussed exploration, development and production company, has signed a Farm-Out Agreement with a wholly owned subsidiary of leading operator Cairn Energy PLC Group (LSE:CNE), Capricorn, in relation to a 70% interest in and operatorship of Licensing Option 16/19 (‘LO 16/19’ or the ‘Licence’). Europa will retain a 30% interest in the Licence, which is located on the Western flank of the South Porcupine Basin, offshore Ireland.  Capricorn to fund a US$6 million work programme, which includes the acquisition, processing, and interpretation of 3D seismic, to acquire a 70% interest in and operatorship of LO 16/19. 3D seismic to be acquired in 2017 and processed product will be delivered in 2018. Europa will fund its 30% interest in LO 16/19 on completion of the fully carried work programme.


Anpario (ANP.L) 300p £68.6m

FYDec16 results from the international producer and distributor of natural feed additives for animal health, hygiene and nutrition. 10% rise in adjusted net profit from continuing operations to £3.4m. 4% increase in sales revenue to £24.3m. 10% increase in the proposed final dividend to 5.5p per share. Cash balances of £11.1m at year end. Significant strategic progress achieved under new CEO including a new strategy for growth and newly aligned organisational structure. “Trading in the new year has started well, maintaining the momentum of the second half of 2016.” “Our strong balance sheet gives Anpario the platform from which to make selective earnings enhancing acquisitions to strengthen its market position and sensibly broaden its product range with scientifically proven products.” FY17E rev £26.29m and PBT of £4.25m.  19x PE.


Genedrive (GDR.L) 41.5p £7.76m

The near patient molecular diagnostics company, has successfully completed clinical validation studies to support a submission for CE regulatory approval of its Genedrive® HCV ID Kit (Hepatitis C).  The studies, performed at Institut Pasteur, Paris, and Queen’s Medical Centre, Nottingham, demonstrated an overall sensitivity of greater than 99% and specificity of 100% over a 955 sample cohort, comparing the test to the Abbott Molecular RealTime HCV Viral Load Assay.  The Company anticipates submission for CE certification under the EU Medical Devices Directive for Genedrive® HCV ID Kit by the end of March 2017. “The Genedrive® HCV ID Kit is a rapid and simple to use point of need test that would enable real-time treatment and management of chronic HCV patients in decentralised settings.”


Attraqt (ATQT.L) 44p £11.85m

The provider of onsite search, online merchandising and eCommerce personalisation technology, has completed its acquisition of Fredhopper BV. Fredhopper is a cloud-based provider of onsite search, navigation, recommendation and visual merchandising solutions through a global SaaS platform, and has a large recurring revenue base. This represents a transformational opportunity which brings critical mass to ATTRAQT – the Enlarged Group has a strong presence in the UK, US and Continental Europe with approximately 250 clients. £27.8m raised at 25p to fund the acquisition with the balance to fund the integration of the two businesses, investment into sales and marketing, customer support and on-going product development and general working capital for the Enlarged Group.


LoopUp Group (LOOP.L) 161.5p £66.17m

FYDec16 results from the premium remote meetings company. LoopUp Revenue grew 39% in FY2016, to £12.8m an increase in growth rate from 36% in FY2015 and 37% in FY2014. FY2016 EBITDA increased by 102% to £2.1 million . Net cash of £2.2m. IPO in August 2016 raising £8.5m. “Looking ahead into 2017, we continue to see strong demand for the LoopUp product and are confident in our ability to deliver further growth.” Maiden operating profit of £0.4m.  EPS of 0.6p vs consensus of  1.26p. FYDec17E rev of £17.1m and PBT of £2.9m.


Tyman (TYMN.L) 302.75p £539.02m

FYDec2016  results from the international supplier of engineered components to the door and window industry. Revenue +29% to £457.6m and underlying EPS +32% to 25.41p. Divi +20% to 10.5p. Net debt £176.7m. Integration of the three acquisitions completed in the year now well advanced.  Current year has started positively and in line with expectations across each of the Divisions. FYDec17E rev of £512.36m and PBT of £63.56m. PE11.4x. Yield 3.7%.


WANdisco (WAND.L) 477.5p £167.74m

FYDec16 results from the  Active Data Replication™  specialist. Total bookings for the year increased 72% to $15.5m. Big Data and Cloud bookings rose 184% to $7.1m. Cash overheads were reduced by $11.2m to $23.4m . Adjusted EBITDA loss was more than halved to $7.5m. Cash at year-end of $7.6m.  Cash burn reduced to $0.2m in Q4 2016. Debt-free as at 31 December 2016. ‘Whilst the timing of contract wins remains variable, we are confident that WANdisco enters 2017 on a strengthened operational footing and is moving closer to cash flow break-even. With a compelling product for Big Data in the Cloud, increasing engagement of our channel partners and a well-established Source Code Management product, we expect continued improvement in our results for 2017.’


Milamber Ventures (NEX:MLVP) 12.5p £0.8m

The incubator working with a number of dynamic fast growth companies to help them through their business development and funding activities, it has signed up a number of new Portfolio Companies in the UK and the US, bringing the total number of companies it works with to 25. See release for details of individual companies across a range of industries. An earlier GM requisition by Mark Bernard Battles has been suspended now that discussions have been entered into with Mr Battles, who had been the subject of a 6 February Board meeting regarding his directorship.


Ace Liberty and Stone* (NEX:ALSP) 5p £49.1m

The Company’s General Meeting has been convened for 31 March. The purpose of the General Meeting is to seek to consolidate the shares (25 for 1) order to have a number of shares in issue which is more appropriate for a company of the Company’s size. The Company believes, due to the fact Ace is now an established business with many years of trading, the Company is no longer a “penny stock” and a consolidation should result in a more suitable trading price. Moreover, the Company believes that having a smaller and more streamlined shareholding which is more in keeping with other NEX Exchange Growth Market companies, will ensure the Company remains attractive to outside investors as the Company seeks to grow and develop the business over the coming year.


OptiBiotix Health (OPTI.L) 76p £59.69m

The life sciences business developing compounds to tackle obesity, high cholesterol, diabetes and skin care, has entered into a manufacturing and supply agreement with Sacco S.r.l. The agreement grants Sacco an exclusive licence to manufacture and supply OptiBiotix’s cholesterol reducing strain, LPLDL®, in Europe in return for 50% of the profit with a minimum price per kilogramme to secure against discounting.  To be supplied as a raw ingredient subject to potential separate licensing agreements. Discussions are progressing with corporate partners for the manufacture and supply of products containing LPLDL® in the US, Asian and other international markets.” FYJul16E revs of £0.3m  and pre-tax loss of £1.2m.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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