Small Cap Feast

Small Cap Feast – 16th January 2017

Dish of the Day:

No AIM Joiners Today

Off the Menu:

No AIM Leavers Today

What’s Cooking in the IPO Kitchen?

Global Energy Development (GED.L) — To be renamed Nautilus Marine Services. Schedule 1 from developer and seller of hydrocarbons and related products. Reverse takeover. Raising $10.5m via a convertible. Expected 9 Feb.

Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas  exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise.

Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.


Breakfast Buffet

InnovaDerma* (IDP.L) 246.5p £29.2m

H1 Dec 16 trading statement from the UK developer of ‘at-home’ and clinically proven treatments for hair loss, hair care, self-tanning and skin rejuvenation. H1 Financial performance has been encouraging and revenues are expected to show growth of just over 80% year-on-year on a constant currency basis to approximately £3.0m (FYJun16E £6.6m). The increase in revenue has been driven by the Company’s expansion strategy in the UK with the strong performance of Skinny Tan. H1 included the listing on the LSE, opening up the US Market and the transition of its manufacturing to the UK.  One off costs to be recognised in H1. H1 strategic initiatives expected to drive top line revenue and earnings from the second half of the Company’s financial year.

Premier Technical Services Group (PTSG.L) 84p £74.26m

The niche specialist services provider, has completed the acquisition of Nimbus, a designer, installer and maintainer of lightning protection and earthing systems based in Nottingham, for a total consideration of £1.0m, payable in cash on completion. The unaudited revenue of Nimbus for the year ended 31 December 2015 was £1.4m, producing a profit before tax of £0.3m.  The unaudited net assets at 31 December 2015 were £0.3m.  “The acquisition provides additional capabilities to the Group, including an attractive testing and inspection base, as well as its installation activities from which PTSG will continue to enhance its market leading offering.” FYDec16E revenue of £36.7m and £7.5m PBT.


Frontier Developments (FDEV.L) 312.5p £106.6m

Trading update from developer of video games. Second franchise Planet Coaster launched in November 2016. “The launch received a positive reception from gamers and reviewers and by the end of December over 0.5 million paid units had been sold.  We have a strong programme of updates in place for Planet Coaster which will be released through 2017 and beyond.  The Group’s Elite Dangerous franchise continues to perform well.  By the end of December 2016 a total of over 2.1 million paid franchise units had been sold.” “Revenue for the six months ended 30 November 2016 was approximately £18.1m, an increase of 66% when compared to the first half of last year. We expect to report EBITDA for the period of approximately £5.7m.” FYMay17E £32.5m rev, PBT £3.4m.


Tax Systems (TAX.L) 70.5p £53.58m

FY Dec 16 trading update from the supplier of corporation tax software and services. “The Company has performed as budgeted at the time of re-admission to AIM in July 2016 and trading and net debt for the year ended 31 December 2016 are in line with market expectations. Since Admission, the Company has strengthened its management team with a number of new appointments to drive organic and acquisitive growth while supporting the Company’s valued existing customer base.” FYDec16E  rev of £5.7m and PBT of £2.2m with strong growth forecast in 2017.


European Metals (EMH.L) 43p £55.65m

EMH announced  that the planned core drillhole programme was completed on time and budget, without time loss incidents. In total 17 drillholes were drilled to a summary depth of 6081 meters.   Analytical results for further two drillholes at Cinovec Main confirmed or exceeded the expected lithium content and mineralization widths. The Company is also announced the appointment of a highly experienced mining executive to the role of Country Manager, Richard Pavlik. Cinovec is the largest lithium deposit in Europe and the fourth largest non-brine deposit in the world.


SQS Software Quality (SQS.L) 622.5p £197.18m

FY Dec16 trading update from the global specialist in end-to-end software and business process quality solutions. Profitability in-line. Focus on high margin business and weaker sterling has had some impact on revenue. Substantial order intakes on digital transformation programmes in recent weeks including A €30m engagement with a major global car manufacturer;- Significant new orders and extensions from public institutions in Europe totalling €20m; A managed service contract with an insurance business worth €10m; Various multi-million US dollar orders from well known US companies.


Ingenta (ING.L) 156.5p £26.5m

FY Dec16 trading update from the software and service provider to the publishing and media industry. “The Group’s financial performance continues the recovery shown in the first half of the year, with positive progress in terms of revenues, margins, costs, and cash flow. As a result, the Board is confident that the business will exceed market expectations for EBITDA and cash for the full year, with a year-end net cash balance of approximately £2 million. The Board reiterates its intention to pay a dividend of 1 pence per ordinary share for the 2016 financial year, the first dividend in the Group’s history.” FY Dec16E rev of £16.3m and PBT of £0.66m.


Instem (INS.L) 223.5p £35.25m

FYDec16 trading update form the provider of IT solutions to the global early development healthcare market. Revenues up c.11% to £18.1m generating adjusted EBITDA of £1.2m. As previously announced, the strong performance in the majority of the business was offset by the disappointing performance of Instem Clinical and the signing of certain contracts, totalling £1.2 million, which has been delayed into 2017. Instem still expects to secure these contracts in the current year. Net cash as at 31 December 2016 was £4.1m.


Grafenia (GRA.L) 7.75p £3.52m

Grafenia has completed the acquisition of the entire share capital of Liverpool based ADD Signs. Mark Eccleston, the vendor of ADD Signs, joins Grafenia as Regional Director of the main operating company in the Group.  He will continue to lead the team at ADD Signs and develop the business.  In the year ending 31st December 2016, ADD Signs’ turnover was approximately £375,000. This acquisition provides Grafenia with expertise in designing, manufacturing and installing a wide range of vehicle graphics and building signs.  FYMar17E revs of £11.2m and pre-tax loss of £0.3m.


Michelmersh Brick Holdings (MBH.L) 49.5p £40.3m

The specialist brick, land development and landfill company, has exchanged contracts for the sale of the 25 acre former Dunton Brothers brickworks at Chesham in Buckinghamshire, for a total consideration of £2.68 million in cash. A profit of over£1m on book value. FYDec16 financial performance expected to be similar to 2015 as previously announced. Cash generation was particularly pleasing with year-end cash balances exceeding forecast. FY16E revenue of £30.5m and pre-tax profit of £4.7m.


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0203 764 2345

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