Small Cap Feast

Small Cap Feast – 17th March 2017

Dish of the Day:

No AIM Joiners Today

Off the Menu:

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.


Breakfast Buffet

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.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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