Small Cap Feast

Small Cap Feast – 17th September 2016

Dish of the Day:

Luceco the manufacturer if LED lighting products has joined the main market raising £26m at 13op.

Biffa (Official List) has also got away with the offer price set at 180p. Mkt Cap circa £450m


Off the Menu:

No AIM Leavers Today

What’s Cooking in the IPO Kitchen?

TI Fluid Systems– has decided not to proceed with its proposed initial public offering at the current time due to market conditions

Van Elle—The geotechnical contractor to the UK construction market is hoping to come to AIM later this month

Ascot Lloyd— The UK IFA is also hoping to join AIM later this month. Ascot Lloyd’s strategy is to grow through a combination of organic growth and further targeted acquisitions.


Breakfast Buffet

Sareum Holdings* (SAR.L) 1.1p £29.1m

The specialist cancer drug discovery and development business has completed the protection of the intellectual property associated with Sareum’s Aurora+FLT3 programme in all the major territories, enhancing its negotiating position with potential licence partners.  The latest patents announced today  will be granted by the Japan and Singapore Patent Offices, covering  inventions associated with Sareum’s Aurora+FLT3 kinase inhibitor programme. This comes just a few weeks after a landmark license agreement was announced for the company’s CHK1 programme.


Elecosoft (ELCO.L) 27.25p £20.4m

The specialist international provider of software and related services to the architectural, engineering, construction and digital marketing industries has acquired  Integrated Computing & Office Networking Limited  for £2.4m.  ICON is a web solutions software development company whose solutions enable organisations to track and manage the specifications of a portfolio of properties through a single platform.  Solid blue chip client base.  Expected earnings neutral in FY16 and enhancing thereafter. ELCO FYDEC16E rev £17.2m, EPS 1.3p.


Great Western Mining (GWMO.L) 0.425p £1.13m

THE silver and copper exploration and development company  has raised £500k at 0.4p per share. The net proceeds of the Placing will provide the Company with additional working capital to fund its pre-development activities on the M2 Copper-Gold target, and to initiate joint development work on M1 with Crown Point Gold & Silver Mining LLC  under the terms of the Huntoon Mine Area Cooperation Agreement recently signed with Crown Point. The deal includes 12.5m 5 year warrants at 0.5p.


Mortice (MORT.L) 94p £47.6m

HYSep16 trading update from the security and facilities management company.  Another strong period of trading in first half of the year, with year-on-year revenue growth of over 57%, including the first full contributions from Office & General and Frontline Security, which were acquired during the previous financial year. The Company expects to announce total revenues for the first half of at least $80m (H1 2015: $51m). Remains on track to deliver full year revenues of at least $170m, in line with market expectations.


Image Scan Hldgs (IGE.L) 7.25p £9.11m

FYSep16 trading update  from specialists in the field of real-time X-ray imaging for the Security and Industrial Inspection markets.  Sales of £3.3m (2015: £1.7m) at a gross margin of 42% (2015: 38%).  Pre-tax trading profit of approximately £0.1m (2015: loss of £0.64m).  Outstanding order book at the end of the period of £1.7m (2015: £0.67m). £1m cash balance at the end of the period  (H1 2016: £0.53m). Recent product development and operational improvements are bearing fruit.


Anglo Asian Mining (AAZ.L) 20.25p £22.81m

The gold, copper and silver producer focused in Azerbaijan, has announced a new gold discovery, “Ugur”, within its Gedabek licence area in western Azerbaijan. This is in line with the Company’s strategy to continue to expand the potential resource at the Gedabek Licence. Ugur provides significant potential upside to the Company’s future gold production. 3km NW of existing plant. Initial Phase II core drilling programme has commenced to determine overall depth and style of mineralisation with a view to increase resources.


Lok’N’Store (LOK.L) 380p £101.4m

The  UK self-storage  company has announced FYJul16 results. Adjusted Net Asset Value1 per share up 27.6% to £3.86. Group Revenue £16.06 million up 4.1 %. Like for like up 7.6%. Group Adjusted EBITDA £6.30million up 10.8%. Annual dividend up 12.5% to 9p. A strong platform for growth. Looking to improve usage, pricing, acquire new sites, increase 3rd party management and grow document storage.


Omega Diagnostics (ODX.L) 18.25 p £19.85m

The medical diagnostics company focused on allergy, food intolerance and infectious disease has released an H1 2016 trading update. Turnover is expected to be £6.83m, 3% ahead of last year’s first half in constant currency terms and 11% ahead of last year’s result. Adjusted PBT in line with management expectations. Continues to see opportunities for Food Intolerance division in the North American market and is actively pursuing a number of prospects in what is an attractive consumer-driven market. FYMar17E Sales £13.8m. PBT £0.8m.


Marlowe (MRL.L) 295p £81.03m

The support services group focused on acquiring and developing companies that provide critical asset maintenance services, has acquired Hentland Limited for a total enterprise value of up to £7.6m on a debt free basis. Hentland provides a comprehensive portfolio of fire protection and security services to over 1,800 customers covering the leisure, logistics, healthcare, food, public service and retail sectors. Immediately earnings enhancing. Hentland reported £5.9m revenue in H1Jun16 and adjusted EBITDA of £0.9m. MRL FY Mar17E rev £36.2m, 7.6p EPS.


AB Dynamics (ABDP.L) 500p £88.82m

The designer, manufacturer and supplier of advanced testing systems and measurement products to the global automotive industry announced that  Tim Rogers, currently Managing Director of the Company, has today been appointed Chief Executive Officer. Tony Best, currently Executive Chairman will become Non-Executive Chairman, wishing to take a less active role, but leaves the company in good shape.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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