Small Cap Feast

Small Cap Feast – 14th November 2016

Dish of the Day:

Admission to AIM of Angus Energy (ANGS.L). Has raised £3.5m  at  6p.

Off the Menu:

Cancellation of SWP Group following unconditional offer

What’s Cooking in the IPO Kitchen?

United Global—According to Arabian Business the merged UAE Exchange/Travelex is seeking a LSE float in Q3 2017 with 30% of the shares to be made public

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. Date and quantum of raise still to be disclosed.

Breakfast Buffet

Inspiration Healthcare Group (IHC.L) 62p £18.71m

The global medical device company, announced that the new Inspire rPAP™, a unique resuscitation and stabilisation system, and an enhanced version of the LifeStart neonatal resuscitation unit will be showcased for the first time at MEDICA, the world’s leading trade fair for the medical industry this week. The Inspire rPAP™ is the first medical device which has been entirely developed in-house by Inspiration Healthcare. FYJAN17E revenue £14.35m, PBT £0.51m, EPS 3.1p.

Augean (AUG.L) 52.5p £53.94m

The specialist waste management businesses, announced that Augean North Sea Services (ANSS), as part of its strategic development, has entered into a partnership with Forth Ports Dundee to establish a state of the art facility in Dundee for the management of waste arising from the decommissioning of offshore equipment. The business unit is opening a new 25,000 square feet material transfer facility at the Port of Dundee.  FYDec16E revenue £65.9m, PBT £7.14m, EPS 5.48p, Dividend 0.8p.

Venture Life Group (VLG.L) 55p £20.26m

FYDec16E trading update from the international consumer self-care group focused on developing, manufacturing and commercialising products for the ageing population.  Strong revenue growth seen in H1 has  continued into H2 with the strong order book and strengthening Euro converting into improving revenue. The Group expects to report revenue  of not less than £14.0m, an increase of more than 50%. UltraDEX (oral care) integration proceeding well. Current market expectation £13.65m rev and £1m pre-tax loss

Sterling Energy (SEY.L) 16.75p £36.9m

Q3Sep16 results from  the international exploration and production company, with a focus on Africa. Production, net to the Company (including royalty barrels) from the Chinguetti field, averaged 351 barrels of oil per day  (Q3 2015: 303 bopd). Adjusted Earnings before Interest, Tax, Depreciation and Amortisation and Exploration Expense (‘EBITDAX’) loss for the Group of $992k (Q3 2015: $2.1 million loss).  Net cash of $91m.  Seeking new non executive appointments following last months resignations. Actively seeking M&A.

Directa Plus (DCTA.L) 124.75p £55.16m

The producer and supplier of graphene-based products for use in consumer and industrial markets, has acquired a 60% interest in the issued share capital of Osmotek, involved in the commercialisation and distribution of textile membranes, for a total consideration of €60k to be invested in the business as working capital. Osmotek was incorporated in September 2015 and, in the period from incorporation to 31 October 2016 revenues were approximately €150k and it  reached its target of operating profit breakeven.

Metals Exploration (MTL.L) 5.87p £111.9m

The natural resources exploration and development company with assets in the Pacific Rim region has announced a proposed placing of 10.3m at a price of 5p. The Company has chosen to raise additional finance due to ongoing delays experienced in realising revenue from gold sales and to provide adequate working capital for the continued ramp-up of the Runruno processing plant which is proceeding satisfactorily. US$15m project debt repayment deferred again.

Orchard Funding Group (ORCH.L) 89p £19m

The finance company which specialises in insurance premium finance and the professions funding market, announced FY July 2016 results.  The Group remains cash generative, with revenues in the period increasing by 1.76% to £3.47 million  (31 July 2015: £3.41 million). Net profit fell, mainly due increased costs associated with the AIM listing, delays by the FCA to authorise brokers and additional investment in sales. The fall was to £1m vs £1.03m. Remains committed to implementing progressive dividend policy in 2017.

Castleton Technology (CTP.L) 65.5p £51.56m

H1Sep16 results from the software and managed services provider to the public and not-for-profit sectors.  Revenues of £9.7 million (H1 2015: £8.5 million), of which over 60% are recurring. Maiden pre-tax profit of £0.6m from £1.1m loss. Post period end appointment of Dean Dickinson as CEO with Ian Smith moving to Executive Deputy Chairman.  Expressed confidence that Castleton will maintain its organic growth, whilst increasing profitability by providing more customers with a broader range of complementary services

AFH Financial (AFHP.L) 190p £38.96m

Trading update from the financial planning led wealth management firm. Expects FYOct16   to show continued growth driven by higher average levels of revenue generated by its advisers with a year on year increase in turnover expected to be over 15%, to over £24m. At the year end Funds under Management  exceeded £2bn, driven by double digit growth in monies invested by existing and new clients.  AFH well positioned to continue to take advantage of ongoing IFA market consolidation with  a strong pipeline of potential acquisitions under negotiation .

Akers Biosciences (AKR.L) 240p £17.7m

The developer of rapid health information technologies has reported Q3Sep16 results.  Total Revenue – all from product sales – up 262% to $613k.  Sales of flagship PIFA Heparin/PF4 Rapid Assay products up 341% to $515k entirely from US-based customers. PBT in the quarter of $310k (Q3 2015: $2.3m loss) following the reversal of an allowance for bad debts of $1.3m.  $2m due under Novotek order in China expected in Q4. Expects profitability in Q4 and FY2017.

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