Small Cap Feast

Small Cap Feast – 11th January 2017

Dish of the Day:

Zenith Energy has joined the LSE under a standard listing raising £2.3m at 7p.  Development and appraisal activities in Argentina, Italy and Azerbaijan.

Off the Menu:

No AIM Leavers Today

What’s Cooking in the IPO Kitchen?

Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas  exploration yesterday announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise.

Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.


Breakfast Buffet

Physiomics* (PYC.L) 2.05p £1.17m

Company update from the UK based systems biology company. Highlights initial payment from Sareum* for modelling carried out on its CHK1 programme and the Innovate UK grant announced earlier this month. The Company continues to work with a number of existing clients on pre-clinical and clinical projects.  In particular, it remains engaged with Merck Serono on a project using the Physiomics’ Virtual Tumour Clinical.  PYC is in active dialogue with existing and new clients regarding extensions and new projects. Currently Physiomics is participating in the Biotech Showcase partnering conference in San Francisco where it has confirmed meetings with a several companies with oncology pipelines. H1 revenues broadly in line with last year. H2 expected to be at least in line.


Joules Group (JOUL.L) 219p £191.6m

Xmas trading update from the British premium lifestyle brand for the 7 weeks to 8 Jan. Joules delivered a strong performance over the Christmas period with total retail sales up 22.8% against the comparable period last year. Retail gross margin rate, over the same period, is expected to be marginally ahead of the prior year.  This outcome reflects continued strong growth across both the Store and E-commerce channels.  FY May 17E revenues of 150.9m and EPS of 8.47p. Div 2.01p.


Premier Asset Management Group (PAM.L) 150p £158.7m

Q1 Dec 16 trading update from the UK retail asset management group. Total assets under management  increased to £5.2 billion as at 31 December 2016. Total net inflows of £140m in the three months to 31 December 2016. Total net inflows of £684m for the rolling twelve months to 31 December 2016.    The Company expects to announce its first interim dividend for the three months to 31 December 2016 in late January 2017, with a payment date in early March 2017. Expects competitive fund sales market in 2017 but feels well placed to deliver. There are no forecasts in the market.


Evgen Pharma (EVG.L) 24.5p £17.9m

The clinical stage drug development company focused on the treatment of cancer and neurological conditions, has received a positive interim safety review from the independent Data Safety Monitoring Board  of its Phase II double-blind, placebo-controlled SAS trial of the Company’s lead product, SFX-01, in subarachnoid haemorrhage.  The SAS trial is a randomised, double blind, placebo controlled study in which a total of 90 patients will be enrolled; 45 patients will receive SFX-01 and nimodipine and 45 patients will receive placebo and nimodipine. The primary endpoints of the trial, which will report out in the first half of 2018, include safety, pharmacokinetics and efficacy. A total of 26 patients have been enrolled in the study to date.


Sigma Capital (SGM.L) 84p £74.5m

FY Dec 16 trading update from the Private Rented Sector and urban regeneration specialist. The Company continues to make encouraging progress and results for the year are expected to be broadly in line with current market expectations.  This has been achieved without the benefit of the launch of an additional phase of managed PRS before the year end and reflects a better than expected performance from both Sigma’s own self-funded activities and its regeneration projects with local authorities. Prospects for the new financial year remain positive, with a substantial pipeline of qualified development opportunities and strong rental demand across the portfolios.


Caledonia Mining (CMCL.L) 114p £60m

Record quarterly & annual gold production from its 49 per cent owned subsidiary, the Blanket Gold Mine in Zimbabwe, for the quarter and year ended 31 Dec, 2016. Approximately 13,591 oz of gold were produced during Q4 2016, +18%·  Total 2016 gold production was approximately 50,351 oz, +17.6%.  The increase was largely due to the start of production from below 750m, improvements in underground infrastructure & the commissioning of a new ball mill. 2017 target gold production is  c. 60,000 ounces at an estimated on-mine cost* in the range of $600 to $630 per ounce and an All-in Sustaining Cost* in the range of $810 to $850 per ounce.   Targets 80k oz by 2021.


Omega Diagnostics Group(ODX.L) 18.25p £19.85m

The medical diagnostics company focused on allergy, food intolerance and infectious disease, announced that its fully owned Indian subsidiary, has received certificates of accreditation from BSI confirming its Quality Management System is compliant with ISO standards. This milestone is an important pre-requisite for CE-Marking the malaria and pregnancy tests produced at this site. CE-Marking is still expected to be achieved by the end of the current financial year. Accreditation also means that products can be supplied for the Indian domestic market with immediate effect and the first commercial sale of one of the Company’s malaria tests has now been achieved. 17x PE.


Vela Technologies (VELA.L) 0.16p £1.12m

The investing company focused on early-stage and pre-IPO disruptive technology investments, intends to raise up to £550,000 via the issue of bonds to be arranged by UK Bond Network Limited. The funds raised by Vela will be used to provide funding for a follow-on investment in travel technology company Portr Limited, the owner of on demand airport transfer service Airportr. The Company has today committed to invest £100,000 of its existing cash resources as an initial follow-on investment in Portr.


Morses Club (MCL.L) 127.5p £165.1m

The UK’s second largest home collected credit lender, announced the acquisition of Shelby Finance Ltd, a provider of online instalment loans. This acquisition is an important strategic development for Morses Club as it will accelerate the launch of a new, branded online instalment loan product. The Company has seen an increasing number of visitors to its website who are looking for alternatives to its core HCC offering. No financial details were disclosed.


Hummingbird Resources (HUM.L) 22.25p £76.37m

Q4 2016 review which saw construction commencing at its Yanfolila Gold Project in Mali ahead of expected 1st gold production at the end of 2017. “The plant will have capacity to process 1.24 million tonnes / year, producing 132,000oz of gold in its first full year of production and a life of mine average of 107,000oz/year with 3.1 grams/tonne  reserves.  Yanfolila provides rapid payback on initial capital invested with over US$70 million free cash flow expected to be generated in its first full year of production.  Our all in sustaining cash cost is in the bottom quartile of producers at circa US$700/oz and importantly, at a US$1,100/oz gold price the project, with a 42% IRR, is extremely robust.”


Head Chef:

Emily Liu, CFA, CAIA
0203 764 2344

Sous Chef:

Sacha Morris
0203 764 2345

*A corporate client of Hybridan LLP


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