Small Cap Feast

Small Cap Feast – 16th March 2017

Dish of the Day:

No AIM Joiners Today

Off the Menu:

No AIM Leavers Today

What’s Cooking in the IPO Kitchen?

Islamic Republic of Iran Shipping Lines rumoured to be considering a London IPO.

BiopPharmma Credit—Targeting $300m + raise on LSE. “This investment trust will give investors access to debt investments tied to the fast growing life sciences industry, offering predictable cash flows over a sustained period of time.” Admission due 27 Mar.

Tufton Oceanic Assets- The Company intends to invest in a diversified portfolio of second hand commercial sea-going vessels where the Investment Manager believes that an attractive opportunity exists in shipping. $150m raise. Admission 3 April.

 

Breakfast Buffet

Karelian Diamonds (KDR.L) 0.55p £2.16m

Karelian has announced a 100 metre extension to the North West of the Riihivaara kimberlite body. The extension was indicated by the results of a series of till samples taken by the Geological Survey of Finland  on behalf of the Company. Samples taken along trend to the North West of the known kimberlite body showed high concentrations of Kimberlite Indicator Minerals  indicating a further 100 metre North Western extension to the known 250 metre kimberlite body extent. The Riihivaara kimberlite body remains open in both directions along strike and to depth. “This further extension of the Riihivaara kimberlite body taken in conjunction with the recent discovery of a diamond in a till sample adds to the diamond prospectivity of the Kuhmo region”.

 

European Metals Holdings (EMH.L) 64.5p £83.47m

HYDec16 results from the specialty lithium exploration and development company with assets in the Czech Republic. $3.1m loss. Balance sheet has cash of $3.4m. The period included a successful production test run and a new exploration license close to the main ore body. Post year end announced a significant resource update. The Cinovec South Resource was added to the Czech State resource register in early January 2017. This is the first step in the process for the granting of a mining permit.

 

M&C Saatchi (SAA.L) 355p £266.8m

FYDec16 results from the Independent Creative Agency Network. Revenue +26% to £225.3m, +19% in constant currencies and 9% on a LfL basis. PBT of £23.7m +18%. FY divi up 15% to 8.29p. “2016 was an outstanding year for M&C Saatchi. We continue to roll out our proven strategy of winning new business and starting new businesses and see positive momentum across our global network and business channels. The year has started well and we are confident that we will continue to make good progress in 2017 and beyond.”FYDec17E £229.2m rev and EPS of 22.9p. 15.5x PE. 2.7% yield.

 

EMIS Group (EMIS.L) 875p £552.4m

FY Dec16 results from the specialist in connected healthcare software and services. Total rev +2% to £158.7m with recurring +4% to £123m. Cash from ops +4% to £38m with net debt of £0.4m from £9.1m. FY divs +10% to 23.4p. Current trading in line with Boards expectations with 81% recurring revenue.   Solid order books and pipelines across every segment. Structural re-organisation, in Primary Care, CCMH, and Secondary Care,  to improve efficiency and better align the Group and its customers. Growth in CCMH, EMIS Care and Community Pharmacy markets with further opportunities in new models of care and Patient Platform. FYDec17E rev of £168.6m and EPS of 51.12p. 17xPE. 2.8% yield.

 

F W Thorpe (TFW.L) 327.56p £376.1m

HYDec16 results from the  designers, manufacturers and suppliers of professional lighting systems for the specification market. Revenue +23.8% to £51.2m/ PBT up  18% to£7.8m. Revenue and operating profit growth at Thorlux drives positive interim result. Lightronics continues to perform well, driven by one off projects. Interim dividend increased to 1.35p (Interim 2016: 1.20p). “Product investment, of course, continues not least with the notable recent introduction of “SmartScan” a new highly advanced wireless lighting control system, which has immediately found favour with many of our customers. Hardware investment also continues and this has most recently included the purchase, in Redditch, of a modern 1,800 square metre freehold factory unit”. “We remain optimistic of a satisfactory overall  result for the year.”  No Mkt Forecasts.

 

Regency Mines (RGM.L) 1.1p £5.24m

Regency Mines Plc announced a Memorandum of Agreement for a coal Joint Venture in Alabama. The MOA establishes a joint venture, 25% Regency and 75% Mr Stephen Moscicki (“SM”), to conduct due diligence over a metallurgical coal property of approximately 6,500 acres in north-eastern Alabama with a view to bringing it into early operation. SM has signed an agreement with the vendor of the Property and made an initial payment. “We are sourcing detailed reports, which may include resource and reserve reports, and permitting information.  This larger but slightly earlier stage asset could be a valuable complement to our two existing coal projects and would build out our development pipeline.”

 

Stilo International (STL.L) 6.25p £7.11m

FYDec16 results from the developer of software tools and cloud services that help organisations create and process structured content in XML format, so that it can be more easily stored, managed, re-used, translated and published to multiple print and digital channels. Revenue +16% to £1.76m. 22% increase in profits before tax to £318,000. Improved cash position of £1,466,000. Total divs +12.5% to 0.09p. “The global market for dynamically publishing structured content to multiple channels continues to grow, which in turn drives the market for XML content conversion and authoring tools.   Overall trading in 2017 continues in line with management expectations, as we continue to invest in the development of innovative new products that will serve to underpin our future growth. “ There are no market forecasts.

 

Diurnal Group (DNL.L) 135p £70.5m

The specialty pharmaceutical company targeting patient needs in chronic endocrine (hormonal) diseases, announced a partnership with Clinigen Group plc’s (AIM: CLIN) IDIS Managed Access division to launch a Patient Access programme in Europe for the Company’s lead products, Infacort® and Chronocort®, for patients with diseases of cortisol deficiency,  enabling physicians in Europe to prescribe Infacort® and Chronocort® as unlicensed medicines on a Named Patient basis for patients who have no other treatment options, ahead of anticipated European approval and commercial launch of the products.

 

IMImobile (IMO.L) 175.5p £106.6m

The cloud communications software and solutions provider, has signed a Global Framework Agreement with Telenor Group following a competitive tender process.  IMImobile will supply its cloud Digital Service Delivery Platform, VAS (Value Added Services) Virtualisation System and services for Telenor Business Units across the Telenor Group. Telenor Group is one of the leading mobile operators, providing tele, data and media services for 214 million subscribers in 13 markets across Scandinavia, Central and Eastern Europe and Asia. FYMar17E rev of £72.1m and PBT of £8.6m. 17xPE.

 

Rotala (ROL.L) 52.5p £22.15m

Rotala has announced a series of new contract wins with Transport for the West Midlands. These contracts will attract a subsidy of approximately £866,000 a year. The passenger revenue associated with these contracts (based on usage statistics provided the time of the tender) is estimated to be a further £740,000 per annum. Therefore in a full year the total revenue derived from these contracts will be approximately £1,606,000. The contracts are for periods of between one and five years, with the vast majority of them concentrated in the three to five year range. Increasing permitted fleet size to take advantage of future opportunities. FYNov17E rev of £59.4m and £3.4m PBT. Sub 10xPE and 4-5% yield.

 

Head Chef:

Derren Nathan
0203 764 2344
derren.nathan@hybridan.com

*A corporate client of Hybridan LLP

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