Small Cap Feast

Small Cap Feast – 10th November 2016

Dish of the Day:

No AIM Joiners Today

Off the Menu:

New World Oil & Gas (NEW.L) has left AIM

What’s Cooking in the IPO Kitchen?

Diversified Gas & Oil—The US based gas and oil producer is seeking a December AIM quoting to raise circa $60m

FreeAgent—Schedule one now out from the provider of accounting software to small businesses. £8m capital to be raised with an anticipated market capitalisation on admission of £34.1m

Civitas Social Housing –Intention to float on Main Market from the first REIT to be listed on the London Stock Exchange offering pure play exposure to social housing

Breakfast Buffet

Next Fifteen Communications (NFC.L) 315p £230.96m

The digital communications group, has acquired an 85% stake in HPI Research, a market research agency based in London. The initial consideration is £1.3m cash. Remaining 15% stake to be acquired in 2018. Consideration target dependent. The acquisition is expected to be immediately earnings enhancing for the Group. For FYSep16, HPI had revenues of £3.4m and adjusted EBITDA of £230k. Largest clients include Sainsbury’s, Argos and Heineken.

Lightwave RF (LWRF.L) 13.25p £2.73m

The Company has announced the launch of Amazon Alexa voice control for the LightwaveRF product range.  LightwaveRF has an extensive range of devices for light, heat and power all controllable with one App. During the last year the Company has made considerable investment in its cloud platform allowing it to integrate with other systems including IFTTT and Google Nest.  Through just one App, LightwaveRF can either directly operate its comprehensive range of devices or be enhanced by powerfully linking to other platforms.

Young & Co’s Brewery (YNGA.L) 1320.5p £391.5m

Sep16 interims from the brewery and pub company. Another period of strong trading, with  7.7% revenue increase against a tough comparative to £136m. Like for like up 5.4%. Adjusted PBT increasing by 8.7% to £22.4m. NAV £453.9m. Interim dividend, raised for the 20th consecutive year, by 6.0% to 8.88pence. Last 13 weeks total sales were up by 4.8% and 3.0% on a like-for-like basis against the exceptional results they delivered for last Autumn’s Rugby World Cup.  Pipeline of acquisitions is looking strong.

Mercia Technologies (MERC.L) 46.75p £99.88m

H1Sep16 interims from the national investment group focused on the creation, funding and scaling of innovative businesses with high growth potential from the UK regions. £5.7million invested in nine portfolio companies of which three are new ‘Emerging Stars’, taking total invested since IPO to £30million. Portfolio company Concepta plc admitted to trading on AIM in July 2016. Net assets of £81.3million (2015: £80.2million). Shares at a 22.8% premium. Cash and short-term liquidity investments of £24million.

Mobile Streams (MOS.L) 13.75p £5.1m

The emerging markets focused mobile media company, has announced its FYJune2016 results which are in line with management’s revised expectations.      Decrease in revenues to £12.8m (2015: £29.1m) caused by ongoing challenges in the Company’s core market of Argentina. EBITDA loss of £0.65m (2015 profit: 1.1m) attributable to investment in new products such as ad-funded services and in scaling new geographies, particularly India. Current cash £1m.  India going well.  Active subscriber numbers are steadily growing and now exceed 75,000

Mincon Group (MCON.L) 70.25p £147.91m

9mth Sep 16 trading update from the Irish engineering group specialising in the design, manufacture, sale and servicing of rock drilling tools and associated products. Revenue was 7% ahead of the same period last year, within which Mincon product sales were 5% ahead, and third party product sales were 15% ahead. Margins slightly up helped by FX benefit. Net cash of 35.1m. Generally preferring internal investment to acquisitions  but continues to make small distribution acquisitions to add to  regional structures and is in ongoing discussion with several parties.

Proactis Holdings (PHD.L) 123.5p £49.2m

The specialist Spend Control software provider, has conditionally acquired Millstream Associates Limited, for a consideration of £15.5 million on a cash free/debt free and normalised working capital basis. Being funded by £6m credit facility and £12.5m placing at 135p.  Millstream (eProcurement) has a track record of conservative revenue growth with strong profit and cash generation, reporting revenues of £4.9 million and adjusted EBITDA (unaudited) of £2.0 million for the year ended 30 June 2016.  Expected to be immediately earnings enhancing. 16x FYJul17 PE.

ABCAM (ABC.L) 858.5p £1.7bn

The supplier of life science research tools, announced that, further to the acquisition of AxioMx, Inc.  in November 2015, it has agreed to accelerate certain performance milestones associated with the development of product technology in recognition of technical success. Abcam will pay a total of $10.3m, of which $6.2m will be satisfied in cash  and $4.1m by the issue of new shares.  The scalable in vitro recombinant monoclonal antibody platform has enhanced Abcam’s existing antibody and immunoassay capabilities. FYJun17E rev £204.6m, £57m PBT, 24.1EPS, 9.68p div.

IDOX (IDOX.L) 60.75p £219.31m

Change of CEO and FYOCT16 trading update  from supplier of specialist information management solutions and services. The previous COO Andrew Riley replaces Richard Kellet-Clarke who remains as non-exec until Oct 2017. Idox performed strongly during the year with double digit growth in both revenues and adjusted profits, including good contributions from organic growth and recent acquisitions. Accordingly, the Company’s adjusted results for the year are expected to be in line with the Board’s expectations. FYOCT16E rev of £79.4m and PBT of £17.7m.

Condor Gold (CNR.L) 70p £37.04m

The gold exploration company announced that scout drilling has commenced on its flagship La India Project in Nicaragua, which hosts a high grade mineral resource of 18.08 Mtonnes at 4.0 g/t for 2.31 Moz gold. The Company has started a 4,000 m scout drilling programme to demonstrate the upside of the entire District, which contains approximately 104.5 km strike length of veins of which only 54.8 km have been trenched or mapped in any detail and only 13.2 km have been drill tested.

Head Chef:

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

*A corporate client of Hybridan LLP

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