Small Cap Feast

Small Cap Feast – 12th January 2017

Dish of the Day:

No AIM Joiners Today

Off the Menu:

Formation Group has left AIM but the shares remain tradable on NEX Exchange.


Northacre PLC left AIM after Shareholders agreed it was in the best interest of the Company after a review of advantages & disadvantages of an AIM quoting

What’s Cooking in the IPO Kitchen?

Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas  exploration has 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

Totally PLC (TLY.L) 55p £11.01m

The provider of a range of out-of-hospital services to the healthcare sector in the UK, announced that Premier Physical Healthcare Limited (PPH), one of the largest independent providers of physiotherapy services in the South East of the UK and a wholly owned subsidiary of Totally plc, has won a three-year activity-based contract extension with NHS Swale Clinical Commissioning Group (CCG). Under the agreement, PPH will deliver physiotherapy services to the CCG as part of the NHS’s “Any Qualified Provider” framework. FY17E revs of £10.65m and close to break even vs FY16E revs of £3.24m and £1.86m loss.


Robinson (RBN.L) 140.5p £23.03m

FY Dec16 trading statement from the custom manufacturer of plastic and paperboard packaging. Revenues are anticipated to be £27.5m for the year, a 5.6% decrease on last year. The primary reasons for this are the previously reported lost business and lower demand for certain categories of branded goods. New business that had been planned for the second half of 2016 has been delayed but will benefit 2017. The movement in average exchange rates has added £0.8m to revenues in 2016. The directors anticipate trading profits for 2016 will be slightly below market expectations (FY16E PBT £2.3mE). In 2017 with significant new business already confirmed plus the full year impact of recently commenced   new business from 2016, the directors expect to deliver revenue and earnings growth.


Adept4 (AD4.L) 7.75p £17.6m

FY Sep 16 results from the provider of IT as a Service. Revenues from continuing operations of £4.9m, including only part-year contributions from companies acquired during the year, of which 66% are recurring. Trading Group EBITDA of £0.9m from continuing operations. Loss for the period of £0.6m (2015: £1.3m). Total of £9.8m new capital raised during the year for acquisitions, working capital and future growth . “Over the last 12 months we have fundamentally changed the shape of the business through a series of acquisitions, disposals and fundraisings. We exit the year with the turnaround activity complete and a solid platform to continue to build on.”


Tekcapital (TEK.L) 36p £12.75m

The international provider of technology and intellectual property services, announced that it has received a “Notice of Allowance” from the US Patent and Trademark Office for its licensed patent application for vibrational energy harvesting from human motion confirming its patent application has been successful. The Directors believe that this new electro-mechanical energy harvest technology has the potential to enable the development of new power generation devices that may be incorporated into footwear to generate power for recharging mobile devices.


Aukett Swanke (AUK.L) 3.5p £5.78m

FY Sep16 results from international group of architects and interior designers. Achieved revenue target of £20.8m (2015: £18.7m). Profit before tax below target at £0.9m (2015: £1.9m). EPS 0.47p (2015: 1.00p). Cash maintained at £1.8m (2015: £1.9m) with net funds £0.8m after new acquisition loan. Successfully completed  acquisition of a major second business in the Middle East to further diversify revenue streams & increase resource capability. Whilst the Group is still confident of its long term position, given the slow down in the UK and the funding requirements in the UAE, the Board has resolved to defer the decision regarding a dividend until the AGM which in March 2017.


Escher Group Holdings(ESCH.L)140p £26.16m

The provider of outsourced, point of service software for use in the postal, retail and financial industries, published a trading update for FY Dec16. Group adjusted EBITDA is expected to be in line with market expectations. Strong cash generation throughout 2016 resulted in Escher achieving a small net positive cash position at year end (net debt at 31 December 2015: $2.7m). Progress continued in developing subscription and maintenance revenues.  Recurring revenue streams represented approximately 50% of turnover in 2016. Licensing revenues will continue to be uneven and difficult to forecast, as most postal customers require one-off licensing agreements. FY16E rev £18.8m, EPS 7.6p.


ASOS (ASC.L) 5389p £4.5bn

4 month trading statement to December. Retail sales grew strongly, +36% on a reported basis and +30% on a constant currency basis as investments in pricing and proposition continued to gain traction.  Medium term reported sales growth guidance remains unchanged at c.20-25% p.a.  Following reinvestment of FX and US duty benefits largely into price, guidance for FY17 reported sales growth is increased to c.25-30%. “Including enhanced reinvestment, we remain confident of delivering current market consensus PBT expectations for the year. Capital expenditure is now expected to be in the £150-170m range for the current financial year”. FY Aug 17 rev of £1.8bn, PBT £80.9m.


STM Group (STM.L) 38p £22.58m

Pre-close trading update from the cross border financial services provider. The Group has traded in line with market expectations of profit before tax of £2.7 million for 2016. As was anticipated, the pricing initiative taken by the Board in the earlier part of the year has significantly increased the take-on of new business for its QROPS international pensions product with new policies for the second half of the year up by circa 50 per cent on the first half of the year and 27 per cent on the second half of 2015. Impacted H1 profitability, but does result in an increased level of recurring revenue for future years. This leaves STM well placed to deliver significant growth in revenue and profit in 2017.


Stadium Group (SDM.L) 82p £31.3m

The supplier of wireless solutions, power supplies and electronic assemblies, announced that trading for the year ended 31 December 2016 was broadly in line with market expectations.  In addition, the Company announced that on 11 January 2017 it acquired the assets of Cable Power Ltd, a specialist manufacturer and distributor of bespoke cable and power products and accessories to Single Board Computing providers, for £0.75 million in cash. For the year ended 31 December 2016, Cable Power recorded sales of circa £0.7 million and profit before interest and tax of circa £0.1 million.  FY16E rev of £52m and EPS of 8.87p. Div 2.9p.


Karelian Diamonds (KDR.L) 0.65 euro cents €2.68m

The diamond exploration company focused on Finland, has received further results and a report from the Geological Survey of Finland  on the kimberlite boulder discovery made 2.5km SW of the Lahtojoki Diamond Deposit, which shows that this boulder is derived from an undiscovered kimberlite. “This   information offers the prospect of there being a new additional undiscovered kimberlite in the vicinity of the Lahtojoki Mining Permit which has a mineral composition indicating that it has sampled the diamond-bearing mantle. This is very exciting indeed and, as hoped, significantly increases the attractiveness of the Lahtojoki Diamond Deposit.”


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Emily Liu, CFA, CAIA
0203 764 2344

Sous Chef:

Sacha Morris
0203 764 2345

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