Small Cap Feast
Small Cap Feast – 17th March 2017
Dish of the Day:
No AIM Joiners Today
No AIM Joiners Today
Off the Menu:
No AIM Leavers Today
No AIM Leavers Today
What’s Cooking in the IPO Kitchen?
Medica Group– The UK market leader by revenue in the provision of teleradiology services has priced its Main Market IPO at 135p raising £121m (£106m vendor sale). Admission 21 March.
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.
REACT Group (REAT.L) 0.8p £2.2m
FY Sep 16 results from the specialist provider of rapid response deep cleaning and emergency decontamination services. Maiden FY results post reverse takeover. Turnover £2.4m. Pre-tax loss £0.15m. Cash of £1.1m. “After a challenging time with the EPUK management, we made the decision to close that side of the business. The core business, REACT Specialist Cleaning, has performed well during this period and we remain positive about its future. We are confident we will have a positive 2017 and look forward to the rest of the year.” Trading at under 1x trailing revenues. There are no market forecasts.
CPP Group (CPP.L) 12.75p £109.2m
The international assistance business, has acquired Blink Innovation Limited for an initial consideration of €1m and an earn-out based on future products developed by Blink. The initial sum will be paid on completion with a total maximum earn-out based on up to 20% of defined profits generated up to a maximum of €20m in profits over the next five years. Blink is a unique digital assistance insurance product for the travel market. Based in Cork, Ireland, Blink is set to launch the world’s first real time resolution flight interruption insurance. There are no forecasts in the market.
Range Resources (RRL.L) 0.34p £25m
HYDec16 results. Revenue increased 38% to $3.8m largely due to increased oil prices. The calculated underlying NPAT for the period demonstrates significant positive progress with a reduced loss by 23% to US$7.3m. Cash of $20.6m. Long term borrowings $20.2m. The Company completed an independent reserves audit, showing increase in total 2P reserves to 24.4 mmboe. Subsequent to the period end, the Company reassessed its work programme and production outlook for Trinidad. As a result, Range does not believe it will meet its previously stated production target of 2,500 bopd by the end of 2017. Proposed RTO of RRDSL, an established oilfield services company in Trinidad; Intended to provide better control of, and significantly lower operating costs per barrel by cutting out the middle man.
Adgorithms (ADGO.L) 16.5p £10.18m
The creators of Albert, the Artificial Intelligence marketing platform, announced a significant new customer win. 12 month rolling contract with one of the world’s largest nutrition, health and wellness companies. As part of this agreement, Adgorithms will deploy Albert across all the Customers’ online advertising campaigns, focusing on its leading brand within its largest South American market. Management expects this contract to generate a minimum of $300,000 of annual SaaS fees.
Cerillion (CER.L) 144.5p £42.65m
The billing, charging and customer relationship management software solutions provider, has won a major new contract with an initial value of €2.4m with a wholesale telecoms operator in Europe. The contract, secured after a competitive tender process, is for the supply of the Company’s enterprise CRM and billing solution and the on-going provision of a managed service to operate it. Cerillion expects the contract implementation to be completed over the next 9 to 12 months. The new contract will help to underpin existing market expectations for the financial year. Following this contract win, the Company has achieved new sales in the current financial year with a value of £13.2m, all with varying implementation periods. No market forecasts.
Ilika (IKA.L) 48.5p £38.03m
Trading update from the pioneer in materials innovation and solid-state battery technology . “Since its last trading update in November 2016, the Company has announced four significant commercial deals, which are resulting in a strong ramp-up of revenue relative to 2015/16 and which will continue to support revenue growth into 2017/18. We expect to start 2017/18 with a record level of revenue commitments amounting to around £1.8m.” The next product milestone on Ilika’s Stereax roadmap is its industrial battery, code-named Endeavour, which will be able to operate in an extended temperature range covering -40 to 150 degree Celsius. This battery is designed to meet the requirements of Industrial IoT, sometimes called Industry 4.0.
Private & Commercial Finance Group (PCF.L) 26.5p £45.08m
Proposed Placing to raise a minimum of £10.0m for the specialist bank and Open Offer to raise up to £0.5m. It is expected that the Placing Shares will be priced at, or around, 25 pence. The net proceeds for the Placing will allow the Group to maintain the level of regulatory capital and liquidity the Group is required to hold as agreed with the PRA and FCA pursuant to the Group’s authorisation on 6 December 2016 for a banking licence. FYSep17E £64.2m rev and £3.6m PBT.
Panmure Gordon & Co(PMR.L) 59.5p £9.25m
The investment bank and corporate broker has agreed terms of an acquisition by a Company owned and controlled by QInvest and by a wholly-owned subsidiary of a fund managed by Atlas Merchant Capital. QInvest is Qatar’s leading private investment group. Consideration of 100p per share (Circa £15.5m) a 68.1% premium to yesterday’s close. There is a share alternative but no plans afoot to seek a public quotation. The press cites the involvement of former Barclays CEO Bob Diamond. There are no market forecasts.
Ortac Resources (OTC.L) 0.03p £2.46m
The mineral exploration Company operating in Europe and Africa, reports that Slovakia subsidiary, ORTAC s.r.o the developer of the Šturec Gold Project, has been re-issued with an underground mining permit by the District Mining Bureau in Banská Bystrica. This decision follows on from the announcement released on the 7 December 2016, when ORTAC s.r.o was notified that the Regional Court in Banská Bystrica had revoked the previously issued underground mining permit. There is a one month appeal period. The Company is now back on track to re-start mining activity by July this year.
Oxford BioDynamics (OBD.L) 134.25p £115.6m
The revenue-generating biotechnology Company focused on the discovery and development of novel epigenetic biomarkers for use within the pharmaceutical and biotechnology industry, announces its participation in a collaboration to identify the biological factors that trigger disease relapses, known as flares, in Rheumatoid Arthritis (RA), entitled the BIO-FLARE study. The consortium, which consists of three UK universities, one German commercial company, the NHS and Oxford Biodynamics, has been awarded £2.8m from the Medical Research Council. OBD’srole is to use EpiSwitch™, to identify epigenetic biomarkers in a RA patient population that are associated with impending relapse in RA.
0203 764 2344
*A corporate client of Hybridan LLP
This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.
The information contained in this document is based on materials and sources that are believed to be reliable; however, such information has not been independently verified and therefore it is not possible to confirm such information as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.
The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).
Any and all opinions expressed are current as of the date appearing on this face of this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.
This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.
In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as relevant persons). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.
Neither this document, nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.
Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.
Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.
This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.
MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.
Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.
If you would like to unsubscribe, please email firstname.lastname@example.org with “unsubscribe me”.