Small Cap Feast

Small Cap Feast – 16th September 2016

Dish of the Day:

No primary today

Off the Menu:

IPSA (IPSA.L) now a cash shell is to delist today

What’s Cooking in the IPO Kitchen?

Hollywood Bowl — CityAM reports that Hollywood Bowl which delayed its expected July IPO is expected to price the issue shortly.

Biffa — Intention to float announcement states that up to £270m is to be raised to pay down debt and historic landfill tax liability.

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

Eco Animal Health (EAH.L) 440p £282.6m

Upbeat AGM statement from the company focused on the development, registration and marketing of pharmaceutical products for animals. Trading this year has started well and the first five months saw sales significantly ahead of the same period last year. Following the “Brexit” vote in June and the weakening of sterling against the major currencies in which EAH invoices ca 97% of sales, it is anticipated that some foreign exchange benef its will enhance earnings. FYMar17E £59.3m rev and 12.97p EPS. 33xPE. 1.4% yield.

PhotonStar LED Group (PSL.L) 1.89p £3.5m

H1 Jun16 results from the designer and manufacturer of smart LED lighting solutions. Revs down 22% to £2.53m. Loss per share flat at 0.4p. Enters H2 with significantly reduced cost base and major R&D work largely complete. Trading continues to be difficult in the traditional LED and contract assembly businesses. However, further revenue improvement seen in Q3 2016. Although trading is currently below market expectations, H2 is expected to provide a positive contribution to FY results. FyDec16E £7.3m sales. (0.37p) LPS.

Bango (BGO.L) 109p £58.56m

The mobile payments company, has expanded the availability of carrier billing for Microsoft Windows Store. For the first time, users in Finland, Norway and Hungary can make purchases from any Windows 10 device, including their Xbox One consoles, using their mobile phone account. The gaming angle is an interesting one due to the high levels of in app purchases. FY Dec16 Forecasts of £4.8m revenues and £3.8m pre-tax loss.

DX Group (DX.L.L) 19p £38.1m

Further to the July announcement that the Competition and Markets authority had served an initial enforcement order regarding the ‘Legal Post’ acquisition, the CMA has now revoked this order but is continuing to assess the transaction. Legal Post had revenues of £5.2m of revenues in y/e May 2015 vs £297.5m for DX Group for FYJun15. Current year forecasts suggest a PE of 4.6x and a yield of 13.5%

Circle Oil (COP.L) 0.65p £3.67m

The international oil and gas exploration, development and production company, has announced the completion of gas pipeline repairs in Morocco. The repaired pipeline spur was used to transport approximately 30% of the gas produced in the Sebou field, which is owned by Circle Oil Maroc (who operate the field with a working interest of 75%) and a Moroccan Government Agency. The repair was carried out by Circle without incident, on schedule and slightly under budget. Production has restarted through the repaired pipeline.

Science Group (SAG.L) 141.5p £56.6m

The provider of independent advisory and advanced product development services focused on science and technology initiatives, has agreed a new 10 year fixed term loan of £15 million. Phased interest rate swaps will fully hedge the loan resulting in a 10-year fixed EAR of circa 3.4%. (For comparison, the effective interest rate on the 5-year term loan, which was scheduled to expire in 2018, is approximately 3.9%. This loan has been repaid.)

Kennedy Ventures (KENV.L) 3.5p £6.13m

The Investment Company with an interest in the Tantalite Valley Mine (TVM) in Namibia announce that it has been informed by Aftan that the plant upgrade program at the Homestead Project in the TVM is progressing as per management expectations with completion anticipated on schedule. Mining operations have continued, with development proceeding as expected and a sufficient stockpile of 4,000 tonnes of ore is now available for the plant to operate continuously.

SyQic (SYQ.L) p £m

SyQic has had an extension granted by the takeover panel regarding a potential takeover by a concert party including Jamal Hassim the current CEO. The cut off is now 7 October 2016. Positive discussions are continuing. FYDec15 results are yet to be published and the shares remain suspended.

Sabien Technology (SNT.L) 4.5p £1.98m

The manufacturer and supplier of M2G, an energy efficiency technology, has announced a conditional £750k placing at 4p. The funds raised from the Placing will provide Sabien with the capital necessary to continue with its growth strategy for up to 40 M2G pilot projects for the Company’s target client base in FY2017 (vs 35 in FY2016).

Intercede Group 9IGP.L) 91.5p £44.67m

Disappointing trading update from the software and service company specialising in identity, credential management and secure mobility. It has had a slow start to the financial year and is continuing to experience delays in the receipt of anticipated MyID license orders. Year to date trading is below expectations and the prior year. FY revenues expected below £11m. A strong pipeline remains and Intercede continues to make good progress in pursuit of its short to medium term strategic objectives.

Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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