Small Cap Feast

Small Cap Feast – 12th September 2016

Dish of the Day:

ASX listed Aura Energy arrives on AIM today raising £2.24m at 1.14p in a placing to help complete a Feasibility Study on the Tiris Uranium Project

Off the Menu:

No AIM Leavers Today

What’s Cooking in the IPO Kitchen?

Jackpotjoy—Press reports Canadian online Bingo firm currently known as Intertain (TSX) to vote on an October IPO in London

Misys— The press reports that the Banking Technology provider owned by Vista Equity Partners is seeking a £5.5bn float in London

Bacanora Lithium— To list on AIM around 28 Sep as holding company for TSX listed Bacanora Minerals at £100m market cap

Breakfast Buffet

Xcite Energy (XEL.L) 8.25p £25.57m

Xcite notes the recent rise in the company’s share price and has updated the market on the restructuring of its $135 million senior secured bonds. It is likely that this will involve a reduction in the balance of the Bonds in return for an equity stake in the Company. Whilst terms of the restructuring have still to be agreed, the Company now believes that there will be a minimal residual equity stake attributed to the Company’s existing shareholders following the restructuring.

Brady (BRY.L) 68p £56.46m

The provider of trading and risk management solutions for metals, recycling, energy and soft commodities, has released H1Jun16 interims. Revenues increased 5% to £14.8m. Adjusted EPS nearly doubled to 1.05p. Net Cash £6.4m (£6.2m).
Efficiency drive continues. Market conditions remain difficult. Full year forecasts are looking for £30.5m and EPS of 3.14p with a PE of 21.6x and a yield of 1.3%

Billing Services (BILL.L) 6.75p £11.3m

The provider of telecommunications clearing and financial settlement products, Wi-Fi data solutions and verification services, has updated further on the earlier announcement that a large Local Exchange Carrier (LEC) entered into a consent decree that the LEC is to cease most wireline 3rd party billing. The Board believes it will have some detrimental effect on revenue & earnings in this financial year & a material effect in future. Alternatives being examined.

Matchtech (MTEC.L) 385p £119m

The international recruitment specialist, focusing on the delivery of solutions within the engineering and technology industries confirms that its name has changed to Gattaca plc (effective 13 September). The ticker will be changing to GATC.L.

Gable Holdings (GAH.L) 2p £2.7m

The European non-life insurance company, has updated on its strategic restructuring whereby it previously disclosed that without funding, downsizing or a halt in trading would be required. Progress made on securing additional capacity for the renewal book. As part of its cost cutting plan intends to delist. Zeus Capital has resigned as NOMAD as have the two remaining non-executive directors.

EKF Diagnostics (EKF.L) 16p £74.28m

The point-of-care business, announced its interim results for the six months ended 30 June 2016, ahead of market expectations. Revenue up 18% to £17.51m. Adjusted EBITDA up 57% to £2.02m. Cash generated from operations of £1.4m. Cash balance of £3.24m. Senior management to be incentivised with performance related packages. Board expressed confidence in hitting the higher end of performance targets for 2016 and delivering further growth of the business in 2017.

GAN (GAN.L) 42p £29.4m

The developer and supplier of enterprise-level B2B Internet gaming software, services and online gaming content in the US, announced it has extended an existing partnership with a major US casino operator to launch an International overseas real money Internet casino gaming website and mobile App. Expected launch H1 2017 targeting Europe/other International regulated markets outside US under a 7 year contract. $1.4m up front payment. Client funding $10m marketing budget.

Restore (RST.L) 354.5p £397.2m

H1Jun16 results from the UK office services provider. Group revenue up 26% to £55.4m. Group adjusted profit before tax up 35% to £9.6m. Adjusted earnings per share up 16% to 7.9p. Interim dividend per share up 33% to 1.33p. Acquisition of PHS Data Solutions post period-end which significantly expands the document shredding business to become second largest provider in the UK and further extends the Group’s position in records management. Full year trading in line. 20.9xPE and 1.1% yield.

Real Good Food (RGD.L) 34p £23.8m

The diversified food business has provided an AGM trading update. Satisfactory overall and confident of meeting full year market expectations across all KPIs. Premium Bakery order intake strong. Cake Decoration visibility good heading into Autumn and Xmas. Company intends to start paying dividends following 2017 results. FYMar2017E numbers looking for £112.9m revenues, EPS of 3.4p and dividends of 1.2p.

Safestay (SAFE.L) 52p £17.79m

The owner and operator of a new brand of contemporary hostel, announced its H1 Jun 16 results. Over twofold increase in revenues in H1 2016 to £3.29m. EBITDA of £0.78m from £0.26m. Net asset value per share increased by 14.2p to 58.0p. Pre-tax loss £598k. Notwithstanding the current trading headwinds impacting London, and more directly Holland Park, the Board remains confident outlook with 2016 FY EBITDA projected to be at the lower end of expectations.

Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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