Small Cap Feast

Small Cap Feast – 11th November 2016

Dish of the Day:

No AIM Joiners Today

Off the Menu:

No AIM Leavers Today

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

Clinigen Group (CLIN.L) 724p £833m

AGM Statement from the global pharmaceutical and services company.  “We delivered a strong financial performance with good levels of organic growth combining with acquisitions to increase adjusted EPS* by 25%. Trading for the current financial year remains in line with the Board’s expectations.” As flagged previously  Peter George will step down as CEO after the AGM and Shaun Chilton will now take over. Peter will continue to work with the Group as a Non-Executive Director. 17.5x FYJun17E PE multiple.

iEnergizer (IBPO.L) 79.5p £151.15m

HYSep16 results from the digital publishing and technology company, which benefits from the dual disruptive waves of big data and the cloud. Revenues of $71.5m (H1 2016: $68.9m). Operating profit $13.8m (H1 2016: $13.7m). Cash and cash equivalents of $11.9m (31 March 2016: $10.2m). Term Debt of $81.5m (31 March 2016: $87.6m).  Expects current market trends to continue in H2 with a continuing focus on underlying operating margins. FYMar17E. Rev £119.6m. 9xPE

Range Resources (RRL.L) 0.63 p £26m

The QUN 158R (renamed QUN 160) development well in Trinidad successfully spudded on 9 November 2016. The well is located in the Morne Diablo field and is drilling ahead to a total depth of 2,600 feet, expected to take approximately 3 weeks to reach target depth. The GY218 SE well located in the Beach Marcelle field is the last well from the five-well campaign to be drilled this year. The well location has been completed and the rig is already rigged up on location. The well is expected to spud by early December 2016.

Aquatic Foods (AFG.L) 11.5p £13m

The Chinese marine foods and seafood processor and producer supplying to export and local markets, has provided a 9mth trading update to Sep 2016. 9mth Revenue for the Group decreased by 5.0%, to RMB 644.9 million (c£76.3 million). Q3 revenue improved by 5.1% compared with Q1 and 10.6% compared with Q2 2016. Volumes higher but pricing lower. Net profit margin of 10-11% vs 14%. Cash strong at c£51m. Near term conditions remain difficult. Increasing marketing and advertising spend. Seeking overseas opportunities.

Global Invacom group (GINV.L) 8p £20.77m

Q3Sep16 results from the satellite communications equipment provider. Net profit of US$0.7m (Q3 FY2015: US$2.7m loss).  Gross profit of US$7.2 million (Q3 FY2015: US$6.3 million). Secured approval to supply next-generation products; positioned for improved sales. The Group will complete R&D and deploy DCSS (digital channel stacking switch)  technology across its LNBs for all customers and territories over the next 12 months 9M FY2016 net profit was US$0.3m compared to a loss of US$5.6m.  FYDEC16E PBT of $4.16m will require a very strong Q4.

Goldstone Resources (GRL.L)1.88 p £1.92m

The West and Central Africa focused gold exploration company has provided an update on the recent drilling programme comprising 3,000 metres of auger and some 1,500 metres of Reverse Circulation drilling of the AK02 prospect, located immediately south west and along strike of the Homase/Akrokerri deposit and within the Akrokerri licence. Confirmed mineralisation at depth and returned significant intersections of 14 metres @ 1.18 g/t gold (“Au”) and 8 metres @ 1.88 g/t Au. Defined a new 1,250 metre x 350 metre zone of gold enrichment.

Stratex International (STI.L) 2.5p £9.35m

Stratex International has also referenced Goldstone’s update on the Homase/Akrokerri deposit. Stratex has a 33.45% interest in Goldstone Resources.

Bacanora Minerals (BCN.L) 74.5p £82.55m

The lithium company developing the Sonora Lithium Project in , Mexico,  has provided an update on the Company’s upcoming definitive Feasibility Study targeted for completion in late Q1, 2017. Resource upgrade and mine planning work has commenced following completion of infill drilling programme. The expanded Pilot Plant has been operating since May 2016, producing battery grade samples of lithium carbonate. Over the past year there has been a significant strengthening in the price of lithium products.

Gloo Networks (GLOO.L) 117.5p £30.08m

The digital transformation company that aims to acquire and develop trusted media brands, announced HYSep16 results. Gloo Networks generated a loss after taxation of £1.6 million, reflecting operating expenses and diligence costs incurred in the continued pursuit of its stated investment strategy. Over £25.6 million in cash at period end. “We continue to be encouraged by the potential opportunities we are seeing in the market, verifying our initial hypothesis.” The Company Floated in August 2015 and has yet to complete its first deal.

Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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