Small Cap Feast

Small Cap Feast – 17th November 2016

Dish of the Day:

No AIM Joiners Today

Off the Menu:

No Aim Leavers Today

What’s Cooking in the IPO Kitchen?

Warpaint London—Intention to Float on AIM from the specialist supplier of colour cosmetics. Aggregate £23m placing of new and existing shares. Targeting 30 November admission

United Global—According to Arabian Business the merged UAE Exchange/Travelex is seeking a LSE float in Q3 2017 with 30% of the shares to be made public

Diversified Gas & Oil—The US based gas and oil producer is seeking a December AIM quoting to raise circa $60m

Breakfast Buffet

Conroy Gold & Natural Resources* (CGNR.L) 22.5p £2.48m

FYMay2016 results. Reduced loss of €292k. New Gold Zones discovered at Clontibret. High Grades and Wide Gold Zones Intersected. Multimillion oz Gold potential targeted at Clay Lake-Clontibret, Four new gold zones discovered at Glenish. £1.4m raised in period. The current drill programme has identified high grade and wide zones of gold mineralisation, that is open at depth and along strike across the target areas.  Look forward to this continuing in 2017.


Crossword Cybersecurity* (ISDX:CCS) 200p £4.8m

The ISDX listed technology commercialisation company focusing exclusively on the cyber security sector has announced a proposed £1.4m fundraising at £1.9 to be supported by current shareholders, certain directors and new institutional investors.  Proceeds to be applied to—expanding sales and marketing activities to accelerate sales growth -developing new cybersecurity products based on university research—and general working capital.


Karelian Diamond Resources (KDR.L) 0.6p £1.91m

FYMay2016 results from the diamond exploration company focused on Finland. Acquisition of Lahtojoki Diamond Deposit. Mining Permit for Lahtojoki Diamond Deposit Granted. Potential to become Profitable Open Pit Diamond Mine. Riihivaarä  Kimberlite Body discovered by Company likely to be Diamondiferous. Rio Tinto Agreement Extended to 2020. Loss of 268k and year end cash of 342k.


SCICYS (SSY.L) 98p £28.5m

Further trading update from the supplier of bespoke software systems, IT-based solutions, web and mobile application development, and support services to the Space, Defence, Media & Broadcast, Government and Commercial sectors. Due to continued strong trading in the second half of 2016, the Directors now anticipate that the Group will deliver adjusted operating profit (before exceptional items and share based payments) and revenues for the year to 31 December 2016 ahead of current market guidance. Consensus looking for £41.5m rev and £2.7m PBT. PE 12.3x. Yield 2.1%.


Keywords Studios (KWS.L) 458.5p £249.44m

The international technical services provider to the global video games industry, has acquired Global Video-Games Services Inc. Expected to be earnings enhancing, Keywords Studios is paying the sellers and settling certain financing obligations to a total of CAD$5.4m.  Enzyme is one of the most recognised technical services brands in the video games industry. The consolidated, audited accounts for the year to 31 December 2015 show revenue of CAD$11.5m and profit before interest and tax of CAD$1.3m.


Redstone Connect (REDS.L) 1.37p £22.46m

The provider of technology and services for smart buildings and commercial spaces, has acquired the entire issued share capital of Commensus Plc for a total consideration of £2.4m. Commensus is a leading provider of fully managed IT support services internationally with a product offering that is highly complementary to RedstoneConnect’s existing IT services and software offerings. Expected to be earnings enhancing in 1st full year of ownership – in FYDEC2015, Commensus generated revenues of £3.2 million and EBITDA of £338,000


ZOO Digital Group (ZOO.L) 8.75p £2.86m

The provider of subtitling and digital distribution services for the global entertainment industry, announced the expansion of its affiliate partner network through the addition of an established film studio and post production vendor for multiple Asia territories. The newest member of the affiliate network is Kantana Group, one of Thailand’s oldest and largest film studios with operations that include film and television production and post-production, including dubbing in Thai for Fox, Warner Bros., DreamWorks, Marvel and Disney.


Genedrive (GDR.L) 130p £11.68m

The near patient molecular diagnostics company, announced the CE-IVD certification of its rapid Genedrive® IL28B SNP human genotyping test. The test is performed in 50 minutes from a buccal cheek swab using the Genedrive® hand-held real-time PCR instrument. The CE-IVD certification further validates Genedrive® as a technology platform for pharmacogenomics. “We are now looking to partner with Pharma and Contract Research Organisations to support the development of SNP assays for clinical trials and clinical applications.”


Shanta Gold (SHG.L) 11p £64.12m

The East Africa-focused gold producer, developer and explorer, has received the advanced payment of US$5.25m as part of its silver streaming agreement (SSA). The Company will also receive an ongoing payment of 10%. of the value of silver sold. The SSA relates solely to silver by-product production from the New Luika Gold Mine with minimum silver delivery obligations totalling 608,970 oz Ag over a 6.75 year period. The Company produced 121,682 ounces of silver in 2015 resulting in approximately 2 per cent. of annual revenue.


Dart Group (DTG.L) 403.5p £597.3m

FYSep16 results from the  Leisure Travel and Distribution & Logistics Group.  A strong summer season saw Group revenue increase 21% to £1,240.8m whilst Group operating profit, underpinned by continued growth in the Leisure Travel business, increased 14% to £167.5m. Interim dividend will increase by 53% to 1.375p. With winter 2016/17 Leisure Travel bookings continuing to perform in line with expectations, the Board is currently optimistic that market expectations for the full year will be slightly exceeded. FYMar17 PE 9.2x.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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