Small Cap Feast

Small Cap Feast – 15th February 2017

Dish of the Day:

Emmerson EML.L has joined the main market under a standard listing. Seeking natural resources acquisitions with a net present valuation of up to £100 million.

AIM admission of Ramsdens Holdings the diversified financial services provider RFX.L. Raised circa £15.6m at 86p.

Off the Menu:

No AIM Leavers Today

What’s Cooking in the IPO Kitchen?

Xafinity –Publication of prospectus. The pensions actuarial, consulting and administration business  has conditionally raised £179.6m. At 139p. Due to join main market 16 Feb.

Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime.  Issue closing 23 Feb.

Arix Bioscience — Intention to float on the main market from the  global healthcare and life science company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management


Breakfast Buffet

Karelian Diamonds (KDR.L) 0.525p £2.16m

Karelian has received a technical report by the Geological Survey of Finland on its diamond discovery in Eastern Finland that was announced on 31 January 2017. The stone, which is described by as being an “excellent diamond”, is 0.8mm in diameter, forming a 12-sided, curved and twinned dodecahedron. It is a sparkling clear crystal with clean faces. The colour is greenish. “The discovery of a diamond in a till exploration sample is an extremely rare event. Such a significant result identifies this new target as a high priority for follow-up work.”


APQ Global (APQ.L) 104.5p £81.6m

The emerging markets growth company announced  that as at the close of business on 30 January 2017, the unaudited book value per Ordinary Share was 97.96 pence*. Pursuant to the announcement made on 16 January 2017 in relation to the dividend of 0.5 pence per share to be paid on 24 February 2017, the Ex-Dividend date was 26 January 2017.


Nighthawk Energy (HAWK.L) 1.39p £13.38m

Year end (Dec 16) reserves update. Proved developing producing 1.1mboe from 1.4m. New proved undeveloped reserves of 0.44mboe. Total 3p reserves 3.88mboe vs 3.63mboe. Total production for the month of January 2017 was approximately 43, 595 gross (35, 544 net) barrels as compared December 2016 production of 35, 985 gross (28, 885 net) barrels.  The increase in production since December 2016 is due to the successful completion of a new zone in the Monarch 10-15 well, together with bringing wells back in production that were suspended during the installation of the water flood pilot project. Year end cash of $5.6m expected to be adequate to maintain its current normal operating activities through 2017.


Polemos (PLMO.L) 0.06p £0.88m

The AIM investment company has raised £495k at 0.035p with certain private investors. The proceeds of the Placing will be used to assist in seeking investment opportunities and potentially making investments in line with the Company’s investing policy. In addition the Company has appointed Nicholas Lee and Daniel Maling to the Board, both as Non-Executive Directors, with immediate effect. Nicholas is currently Non-Executive Chairman of AIM-listed Paternoster Resources plc and a Non-Executive Director of AIM-quoted MX Oil plc and Pires Investments plc.


Animalcare (ANCR.L) 317.5p £67.38m

Very Strong’ H1 ahead of Board’s expectations for the supplier of veterinary medicines, Revenue +12% to £7.97m. Basic EPS +23% to 7.5p/ Cash of £7m. Div +11.1% to 2p. Animalcare is in a good position to build on the strong performance H1.’ The continued health of the business allows us to invest further in our development activities whilst maintaining our dividend policy.’ H2 will also see the launch of a further 4 new licensed products to the Animalcare range, all supporting existing therapy areas. FYJun17E £15.9m rev and £3.6m PBT, EPS 14.9p Div 6.5p.


Hargreaves Services (HSP.L) 275p £87.75m

HY NOV 16 results from the diversified group delivering key projects and services to the infrastructure, energy and property sectors.  Overall performance in the first half was in line with management expectations; Strong prospects in Germany expected to drive outperformance in second half as announced in December; Continuing rev down 2.2% to £170.9m. Underlying PBT down 71.9% to £0.9m. Divi up 58.8% to 2.7p. ‘Good progress is being made in creating and then delivering the targeted £35m-£50m uplift in value from our Property & Energy portfolio’. FYMay17E rev £363m and PBT of £4.5m. Div 4.5p.


AFC Energy (AFC.L) 13.5p £41.89m

Placing and subscription of £6m at 10p  (40.3% discount to close on 13 Feb) from the industrial fuel cell power company with new blue-chip institutional investors and other investors. The proceeds will be used to support the Company on its journey to commercialisation, and specifically for: delivery of its commitments under the Company’s joint development agreement with De Nora S.p.A.; business case development with De Nora; scoping study completion with Peel Environmental Limited and other third parties in advance of any potential project deployment; funding the ongoing operation of the Company’s demonstration plant at Stade, together with ongoing testing costs; and general administrative expenses and ongoing working capital.


Tracsis (TRCS.L) 435p £121m

Trading update from provider of software and services for the traffic data and transportation industry, for HY Jan 17. Group revenues for the six months to 31 January 2017 were c. £15.5m (2016: £13.1m), and EBITDA is expected to be slightly ahead of the previous period (2016: £3.2m*) as is Adjusted Pre Tax Profit (2016: £2.9m). Group cash balances remained strong at c. £12.5m, after paying aggregate contingent consideration in respect of the SEP and On-trac acquisitions of £1.1m.  The business continues to be debt free. H2 expected to be significantly stronger than H2. FY outlook depends on conversion timing but project delivery would result in current expectations being met. FY Jul 17E  £34.7m and PBT£8m, PE 20.7x.


Kolar Gold (KGLD.L) 1.32p £2.71m

The India-Finland gold explorer and trading exchange provider, announced the engagement of Golder Associates Pty Ltd to undertake a review and independent valuation of certain assets held by Geomysore Services India Private Limited in which Kolar Gold holds a 20.5% interest.

The Review is being undertaken to allow the Company to properly appraise the value of its investment in Geomysore whilst providing valuable information on Geomysore’s wider portfolio of gold and non-gold assets.  The Company expects the final report from the Review to be available around the end of March at which point the Company will report on its findings.


Tlou Energy (TLOU.L) 9.13p £21.64m

The Company focused on delivering power in Botswana and southern Africa through the development of coal bed methane (“CBM”) announced a significant upgrade of Reserves for the Lesedi CBM Project and initial Reserves for the Mamba Project in Botswana.  44% increase in 2P (Proved and Probable) Gas Reserves to 3.9 billion cubic feet (BCF). 390% increase in 3P (Proved, Probable and Possible) Gas Reserves to 261 BCF. “Significant gas production potential for the area.  Our ongoing work to assess this continues in tandem with our planning for the staged delivery of a commercial CBM power facility, for which we have received a detailed Request for Proposal from the Government of Botswana.”


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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