Small Cap Feast

Small Cap Feast – 16th August 2016

Dish of the Day:

No Primary Today

Off the Menu:

Hydro International (HYD) cancelled from AIM due to being acquired.

Leed Resources (LDP) leaving AIM under rule 41 due to non  completion of acquisition

What’s Cooking in the IPO Kitchen?

LoopUp—The provider of conference calls and online meetings is seeking to join AIM. 2015 revs of £9.2m and EBITDA of £1.02m

Bacanora Lithium— To list on AIM around 28 Sep as holding company for TSX listed Bacanora Minerals at £100m market cap

Aura Energy—ASX listed uranium developer (ASX:AEE) expected to join AIM 6 September

Autins Group plc – The acoustic and thermal insulation specialist now looks to join AIM late August


Breakfast Buffet

Petards Group* (PEG.L) 15.38p £5.34m

The developer of advanced security and surveillance systems  has been awarded a  £1.3m contract to supply Bombardier Transportation with  Petards eyeTrain systems.  Petards deliveries are due to commence during the latter part of this year with completion expected during the second quarter of 2018. The shares are on a diluted PE rating of 8.1x falling to 7.4x based on 2017 forecasts , a discount of circa 50% to the sector even after a strong recent run in the shares.


Cambridge Cognition Holdings* (COG.L) 40.5p £8.27m

The neuroscience company has announced results from a new technology feasibility study, demonstrating that consumer grade wearables can be used to accurately measure clinically relevant cognitive performance in everyday life using the Company’s new Cognition Kit software, thus having the potential to revolutionise brain health treatment at all stages, from patient assessments during the development of disease-modifying interventions to monitoring of patient health.


Ilika (IKA.L) 50.5p £33.2m

The pioneer in materials innovation and solid-state battery technology, announces that it is taking part in a three-year project to develop protected anodes for lithium sulphur batteries, led by Johnson Matthey Plc and supported by Innovate UK and the Engineering and Physical Sciences Research Council (EPSRC). £365,133 of the grant will be used to fund project activities at Ilika.


Orosur Mining (OMI.L) 20.75p £20.5m

The South American-focused gold producer, developer and explorer has announced FYMay2016 results. Gold production of 35,773 oz, exceeding guidance of 30,000 – 35,000 oz (FY15: 53,485). Gross profit in the year was US$0.8M compared to a loss of US$3.8M in FY15. Net loss after tax and after impairment and write off for the year was US$1.2M (FY15: loss of US$54.4M). Average gold price received of US$1,154/oz (FY15: US$1,232/oz). Guidance for FY17 increased to between 35,000 to 40,000 oz AU .


Roxi Petroleum (RXP.L) 11.25p £105.5m

The Central Asian oil and gas company with a focus on Kazakhstan has released an operational update, including news that, seeking to replicate the success of Well 143, Shallow Well 141 has been spudded. The new well is located some 1,150 meters from Well 143 with a planned depth of 2,450 meters. The new well is initially targeting Jurassic Callovian sands at  2,200 meters with a secondary objective in the Cretaceous Valanginian limestone at a depth of 1,900 meters. Fixed drill cost of $1.25 m.


easyHotel (EXH.L) 79.5p £49.7m

The owner, developer, operator and franchisor of “super budget” branded hotels, has announced a further 96 rooms under development by its Benelux franchisee. This will be the third easyHotel in the Amsterdam region. Additionally, the Group’s Benelux franchisee is due to open easyHotel Brussels in October 2016, ahead of schedule.  The 107 room hotel will be the first easyHotel in Belgium.  FY Forecasts suggest £5.99m of revenues and £0.84m PBT.


Marshall Motor Hldgs (MMH.L) 151.5p £117.3m

The automotive retail and leasing group,  has released H1Jun16 interims. Revenue increased by 30.7% to £826.4m.  Adjusted profit before tax up 33.6% to £14.0m.  Interim dividend of 1.80p per share (Pro rata interim dividend 2015; 0.58p). Adjusted net debt (excluding leasing loans) at 30 June £32.4m. Proforma adjusted net debt / EBITDA 0.8x. Trading since 30 June 2016 has continued to show positive like-for-like new unit sales growth outperforming the wider UK market . PE 7x. Yield 3.1%


Ubisense (UBI.L) 27p £15.1m

The provider enterprise location intelligence solutions, announced its interim results for the six months ended 30 June 2016. First half revenues marginally ahead of 2015 achieved on a significantly reduced cost base. Revenue £10.7m vs £10.4m. Adjusted EBITDA loss of £0.6m (H1 2015: £3.7m loss). ‘The Company is on track to deliver full year results in line with the Board’s expectations.’ There are no forecasts in the market.


Circle Holdings (CIRC.L) 15.25p £36.03m

The employee co-owned hospital group, has been named as the preferred bidder by the Greenwich CCG to provide integrated musculoskeletal (MSK) services in Greenwich.   The five year contract is valued at approximately £73.7 million and is expected to deliver an estimated savings of £12 million for the CCG over the initial five-year term, which is renewable for up to two additional years.


Earthport (EPO.L) 13.6p £65m

The payment network for cross-border payments,  has provided a FYJun16 trading update. Revenues of approximately £22.7 million, +18%. In Line. Cash balance at FY16 year-end of approximately £14.4 million, with cash and cash equivalents of £14.9. In February 2016, Earthport’s FX subsidiary, Baydonhill, experienced a material financial loss of approximately £5 million, resulting from a potential fraud in relation to a corporate client . Various avenues of recovery being pursued.


Head Chef:

Emily Liu, CFA, CAIA
0203 764 2344

Sous Chef:

Sacha Morris
0203 764 2345

*A corporate client of Hybridan LLP


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