Small Cap Feast

Small Cap Feast – 19th April 2017

Dish of the Day:

Ten Entertainment Group—The UK’s second largest ten-pin bowling operator with 40 sites announced that it has been admitted to the premium segment of the Official List

Off the Menu:

NetDimensions has left AIM following a cash offer

What’s Cooking in the IPO Kitchen?

Global Ports Holding—Intention to float on Standard List.  International cruise ports operator. Seeking $250m raise including $75m primary offer.

Dorcaster—Schedule One Update. Admission now expected  3 May. RTO of Escape Hunt raising £14m at 135p

Verditek— Intention to float on AIM. On Admission, the Company’s subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Raising £3.5m. Admission in May.

Eddie Stobart Logistics— Schedule 1. Admission expected 25 April but capital raising details TBC.

ADES International Holding— Intends to join the Standard List in May raising up to $170m plus a vendor sale. Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa. Admission expected in May.

Tufton Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.


Breakfast Buffet

Reabold Resources (RBD.L) 0.75p £2.4m

Reabold has entered into an agreement to buy an initial 2% interest in the advanced San Jose Lithium-Tin Project in Spain for a consideration of A$500,000. Raising £367.5k at 0.5p. High grade intercepts include 142m @ 1.2% Li2O from 67m, 68m @ 1.1% Li2O from 91m,    45m @ 1.0% Li2O from surface  and 250m @ 1.0% Li2O from surface. In excess of 1.1 million tonnes of LCE resource (Non JORC 2012). Updated JORC compliant resource expected May 2017 (including recent drilling).  Exceptional metallurgy results – 97% lithium recovery achieved in first stage metallurgical testwork.


Stanley Gibbons Investment (SGI.L) 8.62p £15.4m

The world’s pre-eminent, prestige collectibles merchant, has sold one of the rarest pieces of Indian Philately to a private collector-investor in Australia for £500,000, the highest price ever paid for a single Indian philatelic item.  The unique strip of four 1948 Gandhi 10 rupee Purple-Brown and Lake ‘SERVICE’ stamps is considered the most important and desirable item of post-1947 Indian philately. “The market for high-quality Indian rarities has been strong for several years and is supported by the on-going desire of the wealthy, Indian diaspora and savvy international clients to own these historic assets. Given Stanley Gibbons’ specific expertise, we are best placed to identify, authenticate and trade rare Indian stamps of the highest quality.”  There are no market forecasts.


Magnolia Petroleum (MAGP.L) 0.19p £1.66m

The US focused oil and gas exploration and production company, announced its participation in 12 new wells in proven and producing US onshore hydrocarbon formations, including the Bakken/Three Forks Sanish in North Dakota, and the Woodford, Mississippi Lime in Oklahoma.  The 12 new wells, which have an aggregate net cost of US$270,300, are in line with the Company’s strategy to rapidly build production through drilling and to prove up the reserves on its leases. “Half of these new wells are increased density wells on leases where production has already been established. They therefore offer a low risk route to increasing production and upgrading reserves to the proven developed producing (`PDP’) category.  As a result, we anticipate further growth in our PDP reserves which were recently assigned a value of US$4 million, almost double our current market capitalisation.”


Lombard Risk Management (LRM.L) 10.63p £42.56m

FYMar17 trading update form the provider of integrated collateral management and regulatory reporting technology solutions for the financial services industry. It expects to report revenues for the year, ahead of current market forecasts, in the region of £34.0m to £34.4m, primarily driven by strong revenue growth in the Company’s Risk Management and Trading Software division. The Company expects to report a year-end net cash balance of £7.0m and adjusted EBITDA in the region of £2.4m to £2.8m, significantly better than market expectations. The year-end cash balance was higher than expected due to a strong focus on debt collection and improved working capital management. Capitalised Research and Development is expected to be in the region of £7.5m.  FYMar17E £31.9m rev and £4m pre-tax loss.


Vianet (VNET.L) 105.5p £26.99m

FYMar17 trading update from the international provider of actionable data and business insight through devices connected to its Internet of Things platform. Trading for the second half of the year has continued to improve as anticipated and, as a result, the Group’s full year profits will be broadly in line with market expectations and ahead of last year’s outturn of £3.02 million from continuing operations.  We could see no market forecasts.


Bomarché Holdings (BON.L) 75p £37.5m

Trading update (14 and 53 weeks) to 1 April from  one of the UK`s largest women`s value retailers.  14 weeks sales increased by 2.7% against the corresponding period in FY16. Store LFL sales decreased by 0.5% and online sales increased by 15.2%.  53 weeks sales decreased by 0.5%; store LFL sales decreased by 4.3% and online sales grew by 2.2%. The Board expects that the pre-exceptional PBT for the 53 week period ended 1 April 2017 will be slightly above the mid-point of the £5.0m to £7.0m range previously quoted on 21 September 2016. The Group`s financial position remains sound. ‘Whilst we expect the apparel market to remain challenging during the coming financial year, we are actively taking measures to improve our proposition to customers.’


European Metals Holdings(EMH.L) 82p £98.4m

Successful completion of the Preliminary Feasibility Study (“PFS”) for development of the Cinovec Lithium & Tin Project, which highlights that Cinovec could be a low cost lithium carbonate producer. Net overall cost of production -$3,483 /tonne Li2CO3. Net Present Value (NPV) -$540M (post tax, 8%).  Internal Rate of Return (IRR) – 21 % (post tax). Total Capital Cost -$393 M.  Annual production of Battery Grade Lithium Carbonate—20,800 tonnes. Study based on only 9.9% of defined Indicated Mineral Resources. ‘The study highlights the potential for Cinovec to be the world’s lowest cost hard rock producer of lithium carbonate due to its unique geological and metallurgical characteristics. ‘ Strong macro outlook for Lithium.


System 1 Group (Formerly BrainJuicer) (SYS1.L) 850p £104.25m

FyMar17 trading update. ‘The Company has continued to trade strongly since December 2016.  For the 12 month period ended 31 March 2017, vs the 12 months to 31 March 2016, revenue grew by some 27% to approximately £33m and gross profit (our main top line performance indicator) has grown by some 29% to approximately £27m.  Excluding the impact of exchange rate movements the increase in revenue was approximately 13% and gross profit was some 15%.  These growth rates are similar to those for the 12 month period ended 31 December 2016, as are the product mix and geographic split.’ Expects FYMar17 PBT post exceptional costs of £6.2m +25% in line with expectations.


Altitude Group (ALT.L) 60p £27.83m

The provider of innovative technology solutions for small to medium sized businesses, has announced two new North America supply agreements. Firstly Buffalo NY based Market Brands who has undertaken to recruit 100 new sales staff to target the creation of tens of thousands of branded web stores for small businesses throughout the USA.  Altitude will receive a percentage of every order. Secondly, Altitude has signed an agreement for the supply of print, signage and photo book products (“Print Products”) with a leading Tier One manufacturer that enabling the addition of these categories to the technology and supply chain platform.  FYDec17E rev £6.8m and PBT £2m. 18.8x PE.


Forbidden Technologies (FBT.L) 6.88p £12.4m

The owner and developer of Forscene (the market-leading cloud video platform), announces that the Company’s Forscene proof of concept with a major UK broadcaster has been extended to complete the testing and evaluation impacted by organisational changes at the broadcaster client.  The extended proof of concept with the broadcaster, which covers a workflow that includes the editing software of a major US technology player, is expected to conclude towards the end of the calendar year.  There are no market forecasts.


Head Chef:

Derren Nathan
0203 764 2344

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