Small Cap Feast

Small Cap Feast – 14th October 2016

Dish of the Day:

No AIM Primary Today

Off the Menu:

No AIM Leavers Today

What’s Cooking in the IPO Kitchen?

Biffa— The waste disposal company’s IPO is also now in doubt with the valuation coming under scrutiny according to the press

TI Fluid Systems– has decided not to proceed with its proposed initial public offering at the current time due to market conditions

Van Elle—The geotechnical contractor to the UK construction market is hoping to come to AIM later this month

Ascot Lloyd— The UK IFA is also hoping to join AIM later this month. Ascot Lloyd’s strategy is to grow through a combination of organic growth and further targeted acquisitions.


Breakfast Buffet

Milestone Group* (MSG.L) 1.53p £11.96m

The provider of digital media and technology solutions has announced the launch of its unique Alchemy digital media platform and the commencement of its first social impact fundraising campaign, the Metropolitan Police’s Divert scheme. Alchemy users can buy and download from an extensive and growing library of varied media. Milestone receives revenue in the form of a percentage of every sale made through this media platform. Milestone also anticipates that there will be commercial benefits gained from the additional partnerships made through Alchemy.


Ergomed (ERGO.L) 120p £47.8m

The UK-based group dedicated to the provision of specialised services to the pharmaceutical industry and the development of new drugs, announced that its co-development partner, Aeterna Zentaris, Inc. (NASDAQ:AEZS, TSX:AEZ), has signed an additional licensing agreement for Zoptrex™. The exclusive license agreement is for the territories of Australia and New Zealand for an upfront payment plus milestones and royalties. The Company will receive a portion of all revenues generated from the commercialisation of the product.


EU Supply (EUSP.L) 10.75p £7.28m

The e-procurement software provider, has signed an addendum  to the agreement with the Minister for Public Expenditure and Reform in Ireland to regarding the Irish Government’s national eProcurement platform,,  powered by the Company’s CTM™ platform. The Addendum is on a time and materials basis and is expected to generate aggregate revenues of c. 450k. Up to €50k in 2016 and the remainder in 2017.  FYDec17E revenues of £3.75m, pre-tax loss of £0.15m


Beowulf Mining (BEM.L) 5.75p £27.56m

The mineral exploration and development company, focused on the Kallak magnetite iron ore project and the Åtvidaberg Volcanogenic Massive Sulphide (“VMS”) lead-zinc-copper-silver exploration licence in Sweden, and its graphite portfolio in Finland, has disposed of its Grundtrӓsk gold exploration licences.  The deferred cash consideration by Erris Resources includes a $200k payment dependent on the announcement of a JORC indicated resource of 100k oz Au. Further milestones dependent on reaching 1m oz and net smelter royalties.


Grafenia (GRA.L) 10.13p £4.6m

The provider of systems to the graphic arts industry has provided an H1Sep16 trading update. Trading in July and August was below last year’s levels. Sales in September improved significantly, although not to budgeted levels. Whilst October has started encouragingly, The Company remains cautious. In the face of fierce competition the Company has realigned its pricing model.  H1 volumes were up 14% and added 20 new Partners in that period. Provided trading continues to improve, market expectations remain achievable.  FYMar17E rev £12m. EPS 0.96p.


Weatherly International (WTI.L) 0.256p £2.9m

FY Jun 16 results from development and exploration Company focusing on Copper in Namibia. In the face of weak copper prices  revenue increased to US$63.7m vs US$38.1m in the previous year, with Tschudi production volumes more than offsetting the loss of volume from the suspension of Central Operations in the first quarter and the significant year on year decline in copper price.  Overall the profits of Tschudi and the Tsumeb Tailngs Facility disposal exceeded the losses in Central Operations and Corporate costs. The Group reported an operating profit of US$1.4m .


Ambrian (AMBR.L) 2.5p £6.3m

In light of the prevailing uncertain business environment in the commodity sector, Ambrian’s  metal trading activities will be wound down in an orderly manner and closed over the next few months. Thereafter, Ambrian will focus on the development of its industrial asset base and building a portfolio of businesses with a balanced risk profile and defensive income drivers.  Ambrian is currently assessing a number of strategies, investments and corporate transactions to meet these goals.


Inland Homes (INL.L) 63p £127.8m

The housebuilder and brownfield regeneration specialist, has reported FYJun16 results.  30% increase in NAV to £116m, reflecting £18m revaluation surplus on investment properties.  Group revenue for the year of £101.9n (£114.2m) and PBT of £32.9m (£34.0 m).   29% increase in proposed final dividend to 0.9p per share reflecting robust underlying performance and confidence in outlook. House sales continuing at normal rate post referendum, particularly at Inland’s price point and geographic focus.


Elegant Hotels Group (EHG.L) 67p £59.5m

Trading update from the owner and operator of six upscale freehold hotels and a beachfront restaurant on the island of Barbados. FYSep16 in line with market expectations. FY16E revenues £44.8m, EPS 8.65p, 6.48p dividends. The Company has also reached an agreement in principle to bring a 123-room luxury hotel in Antigua into Elegant Hotels’ portfolio under a management contract, due to open mid to late 2017. The Company is considering a number of  similar propositions outside of Barbados.


Lightwave RF (LWRF.L) 13.5p £2.78m

The Internet of Things (“IOT”) provider of the LightwaveRF platform and connected devices enabling domestic and commercial users to remotely monitor and control light, heat, power and security by smartphone, tablet or PC, has taken a £150k loan from its principal shareholder.  On trading H2 to Sep 16 expected to be in line with H1. Changes in distribution base have caused some disruptions to order flow but all 3 (up from 1) distributors now placing repeat orders and reporting much improved market traction. Order book £800k.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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