Small Cap Feast

Small Cap Feast – 15th September 2016

Dish of the Day:

No primary today

Off the Menu:

Following the disposal of its trading operations Cdialogues (CDOG) is to leave AIM

What’s Cooking in the IPO Kitchen?

Biffa — Press reports that the waste disposal company will shortly unveil plans to raise up to £300m in a London IPO.

PureGym — The UK’s largest gym operator is seeking a main market listing and seeks to raise £190m primarily to pay down debt.

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

Collagen Solutions (COS.L) 1.13p £5.9m

The developer and manufacturer of medical grade collagen components for use in regenerative medicine, medical devices and in-vitro diagnostics, has been invited to participate as an industrial collaborator for an upcoming Horizon 2020 project. The wholly grant-funded project addresses a pressing clinical need using cell-based tissue regeneration techniques. The project should begin in early 2017 for approximately five years, over which Collagen Solutions will receive approximately €500,000 of EU funding.

Medaphor Group (MED.L) 31p £9.89m

The global provider of advanced ultrasound skills training simulators for medical professionals, announced that ScanTrainer Professional, ultrasound skills training simulator, has been awarded official Accredited Provider status by The CPD Standards Office. This means doctors and sonographers in several territories can gain CPD points by completing ScanTrainer’s curriculum-based general medicine, obstetrics, gynaecology and emergency medicine ultrasound modules.

Powerflute (Powr.L) 73.75p £214.35m

The paper and packaging group has announced the terms of a recommended cash offer to be made by Nordic Packaging and Container (Finland) Holdings. 90p in cash per share and 90p in cash less the applicable subscription price for each option. 27.5% held by the Chairman Dermot Smurfit and associates has been agreed at the lower price of 80p. The 90p price is a premium of circa 22% to yesterday’s close.

Crawshaw Group (CRAW.L) 73.5p £58m

Further to the June AGM statement that had noted suppressed footfall due to international football, bad weather and Brexit, the fresh meat and food-to-go retailer has stated that these factors persisted through to the end of H1, resulting in a further reduction in like for like sales, although this was partly mitigated again by a further strengthening of gross margin. Conditions remain difficult. Confident of restoring sales momentum for key winter season. FyJan17E consensus £50.3m sales and £170k pre-tax loss.

Tribal Group (TRB.L) 55.5p £108.4m

The provider of products, services and software to the international higher education, further education, training and vocational learning markets has announced June interims in line with expectations with FY guidance unchanged. Revenue down 22% to £45.2m. Operating profit down 81% to £0.5m. Profits expected to be H2 weighted. Management team refreshed. Annualised cost savings by year end of £8.5m. Recurring revs 38%. FY Consensus looks for £89.4m revenues & £2.31m PBT.

Franchise Brands (FRAN.L) 41p £19.32m

Recently listed multi-brand international franchisor, has announced H1Jun16 results. Total revenue up 10% to £2.5m. PBT up 18.3% £724k. ChipsAway and Ovenclean, the Group’s two main brands, continue to trade well. No discernible Brexit effect on franchisee recruitment or trading. Strong pipeline of acquisition prospects. Y/e cash of £1.16m with £2.9m net raised thereafter in August IPO. There are no forecasts in the market.

Cronin Group (CRON.L) 1.13p £5.91m

The specialist in the digitisation of chemical space coupled with innovative chemical drug discovery announced H1Jun16 results. Zero revenues and a reduced loss of £0.31m. Substantive progress in further developing the Company’s strategic roadmap to digitise chemistry. In the period Steve Coles joined the Company from main list Mears Group plc as Chief Technology Officer. Cash and short term deposits at 30 June 2016 of £5.10 million.

Purplebricks Group (PURP.L) 130p £318.6m

AGM Trading update from the hybrid estate agency. Trading since the start of the new financial year on 1 May has been very encouraging, with little discernible impact following the EU referendum. For the period, UK instructions are up 121% YoY and have continued to grow culminating in 3,156 instructions in August. Market share versus online peers has strengthened to 65%. On track to meet FY expectations with UK to move into profitability. FYAPR17E revs £43.2m, £1.8m pre-tax loss.

Colefax Group (CFX.L) 497.5p £45.99m

The international designer and distributor of luxury furnishing fabrics & wallpapers has updated on trading. Conditions have remained relatively challenging in all major markets. In the core Fabric Division, sales for the four months to 31 August are up 4% in reported currency but down 7% on a constant currency basis. Broadly in line with expectations. New show rooms in the US and a relocation of the decorating division provide some room for optimism. FYAPR17 PE of 16.9x.

Infrastructure India (IIP.L) 12.13p £82.5m

The infrastructure fund investing directly into assets in India, has entered into a revised management and valuation and portfolio services agreement with Franklin Park Management, the Company’s existing asset manager, to effect a reduction in annual cash fees payable. This will be a fixed feed of £5.5m plus annual issuance of 605.7k shares. Last reported NAV was £325.8m.

Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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