Small Cap Feast

Small Cap Feast – 14th September 2016

Dish of the Day:

No Primary Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

GoCompare — esure Group (ESUR.L) planning a separate main market listing for in Q4 2016

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

Ariana Resources (AAU.L) 1.82p £15.36m

Results today of the Phase One drilling programme of 2016, completed during early September at the Kiziltepe Project Turkey. Best intercepts include, 7m @ 8.5g/t Gold + 26.2g/t Silver, 11m @ 3.7g/t Gold + 75.4g/t Silver and 13m @ 3.2 g/t Gold + 37.7 g/t Silver. Drilling confirms potential to extend the Arzu South pit to the NW, enabling access to mineralisation which lies beneath the pumice ignimbrite cap rock sequence and improves the potential for future underground operations.

Parkmead Group (PMG.L) 49.25p £48.7m

The UK and Netherlands focused independent oil and gas group, has increased its stake in the Perth and Dolphin oil fields in the UK Central North Sea to 60.05%. Perth and Dolphin are two sizeable Upper Jurassic Claymore sandstone accumulations that have tested 32-38o API oil at production rates of up to 6,000 bopd per well. As a result of this latest move, Parkmead has increased the Group’s total proved and probable (2P) reserves by 19% from 23.5 to 27.9 million barrels of oil equivalent.

Vipera (VIP.L) 5.12p £13.25m

The specialist provider of mobile financial software services, has deployed its new retail customer engagement solution with its first customer, a large Italian retailer. Through proximity technologies, it allows the engagement of individual customers in stores with personalised mobile notifications matching their spending profile and the delivery of a coherent experience with an omnichannel communication strategy integrating ecommerce, CRM, social channels and loyalty programs.

Blue Star Capital (BLU.L) 0.15p £0.75m

The investing company with a focus on technology and its applications within media and gaming, has provided a portfolio update. Oak Media previously written down to £50k written off to zero. Disruptive Tech’s minority holding VNU Group has launched its sales website Sthaler is performing in line with Sthaler’s managements expectations. The first commercial application of the Fingopay solution is expected to go live this month with a further launch planned for later this year. Hopes for a major deal within 6 months.

Driver Group (DRV.L) 47.5p £15.06m

H2Sep16 trading update from the global professional services consultancy to construction and engineering industries. The Group has returned to profit during the second half. Turnover expected roughly 7% ahead of that recorded at the interims. Revenue/operating profit in Europe & Americas above expectations, whilst revenues in AMEA broadly in line. However AMEA profits disappointing & taking a further £520k bad debt provision. Modest FY loss expected vs consensus of £1.3m PBT. Confident of progress in 2017.

Character Group (CCT.L) 475p £101.6m

The designers, developers and international distributor of toys, games and giftware expect to deliver FYAUG16 numbers in line with market expectations. A significant proportion of the Company’s purchases are in US$ dollars. Nevertheless, the Board remains of the view that it can continue to mitigate the resulting increased costs. Exciting brand launches include Stretch Armstrong and Twozies, a girl’s collectable item. Consensus expectations are £110m sales and 46.2p EPS. 10.3x PE. 2.7% yield.

Epwin Group (EPWN.L) 107p £151.4m

The vertically integrated manufacturer of low maintenance building products, supplying the Repair, Maintenance and Improvement, new build and social housing sectors, announced H1 Jun 16 numbers. Revenues up 16% and underlying operating profit up 48% to £143.3m and £11.8m respectively. Good contribution from businesses acquired in 2015. Long term the need to renovate the UK’s housing stock provides a positive background. 7.7xPE. 6.2% yield.

Cello Group (CLL.L) 108.5p £94.2m

H1Jun16 interims from the healthcare focused strategic marketing group. Revenue up 5.0% to £80.9. Headline profit before tax flat: £4.2m. Interim dividend up 19.0% to 1.00p reflecting new dividend policy to pay out c.40% of headline earnings per share. The Group expects to benefit from the usual second half weighting. The Group also expects to benefit from the recent strengthening of the US Dollar against the Pound. Overall momentum is strong, The Board believes that full year expectations will be broadly achieved. 12.1x PE. 2.8% yield.

Accesso Technology (ACSO.L) 1,700p £356.1m

The technology solutions provider to leisure, entertainment and cultural markets, today  announced H1 Jun16 results. Revenue growth of 23.7% ($39.7m), adjusted operating profit up 212.5% ($5m) and adjusted EPS up 260.2% (15.7c). H2 weighted with unhelpful weather conditions in Jul/Aug in some markets. However on track to meet full year expectations. Consensus is looking for £74.1m revenues and pre-tax profit of £10.23m. 52.7x PE

Focusrite (TUNE.L) 162.5p £94.37m

The global music and audio products company, confirms that it expects revenue for the year ending 31 August 2016 to be approximately £54 million, following a strong performance in the second half. Cash ended the year at £5.6m, up from £4.0m at the half year. Consensus is looking for £53.5m sales and EPS of 9.5p. 17x PE and 1.1% yield.

Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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