Small Cap Feast

Small Cap Feast – 19th January 2017

Dish of the Day:

Shares in the Bank Of Cyprus have been admitted to the Main Market.

Off the Menu:

No AIM Leavers Today

What’s Cooking in the IPO Kitchen?

SuperAwesome — The London based specialist in e-compliance is considering an IPO in its home town according to City A.M.

Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas  exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise.

Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.


Breakfast Buffet

Powerhouse Energy Group (PHE.L) 0.83p £5.02m

The holding Company of the G3-UHt System Ultra High Gasification waste to energy systems has entered into an agreement to raise gross proceeds of £250,000 via a placing at 0.7p with Yady Worldwide. Keith Allaun, Executive Chairman of PowerHouse said: “We welcome Yady Worldwide as a significant investor in PowerHouse. Yady Worldwide’s commitment to the burgeoning Hydrogen Economy, as well as waste-to-energy sector, is underscored by its investments in both Waste2tricity plc and AFC Energy PLC. We look forward to having them on board to assist with our commercial roll-out and growth.”


Orosur Mining (OMI.L) 17.125p £17.1m

Exploration update from the South American-focused gold producer, developer and explorer. Orosur has completed a preliminary geological model for the Aragon-Pastorera Trend Area (APTA) of the Anzá project, based predominantly on 17,408m of existing diamond core drilling data from 53 holes previously drilled. 3,000m of this core has been re-logged, with special attention given to the lithology, alteration suites, structural trends and grade distribution. A geological estimate of an exploratory gold potential of a portion of the APTA has been prepared with the assistance of Mine Development Associates of Reno, Nevada. The resulting potential ranges between 1.6 M – 2.3 M tonnes averaging between 3.2 – 3.7g/t Au. This estimate is based on current drilling and is expected to grow as future exploration drilling is conducted.


The Mission Marketing Group (TMMG.L) 45p £37.85m

The marketing communications and advertising group, today issued a FYDec16 trading update. Strong second half, and accordingly the Company expects 2016 to be a year of further growth, both in terms of operating income (revenue) and profitability. Headline profit before tax for the year to 31 December is expected to be 8% higher, at £7.0m.  The Company’s balance sheet remains strong and, despite settling over £3m of acquisition obligations during the year, gearing and debt leverage ratios are expected to be lower than those of 2015 and comfortably within the Board’s target.


CyanConnode Holdings(CYAN.L) 0.2p £31.6m

FYDec16 trading update from the specialist in narrowband radio mesh networks. Trading for the period was in line with management’s expectations with revenues of approximately £1.8m, which is an increase of 560% compared to the same period last year. Cash, as of 31 December 2016, was £3.9m. Importantly, a significant portion of revenue growth was underpinned by the PVVNL and CESC deployments in India and the long-term nature of subsequent contract wins provides improved visibility going forward, with order backlog from existing contracts going into 2017.


Cello Group (CLL.L) 99.85p £87.14m

The healthcare focused strategic marketing group, today announced a FYDec16 trading statement.   The Group has delivered an encouraging trading performance in the year, with gross profit and headline profits in line with consensus market expectations. Good like-for-like gross profit growth at Cello Health. US remains  key growth driver. Strong like-for-like growth in gross profit and improved double digit operating margins by Signal. Excellent performance from Cello’s growing suite of software-enabled products providing increased future gross profit visibility. Strong balance sheet, despite settlement of VAT liability, reflecting solid cash flow conversion. Increased dividend pay-out in line with intention to distribute c.40% of headline  earnings. FY16E PE 11.9x.


TMT Investments (TMT.L)* $1.7 $47.2m

The venture capital company investing in high-growth, internet-based companies across a variety of core specialist sectors yesterday announced that its portfolio company Pipedrive, Inc. has completed a US$17m Series B equity financing round, led by Atomico, with participation from Bessemer Venture Partners and Rembrandt Venture Partners.
The transaction represents a revaluation uplift of approximately US$4.08m (or 132%) in the fair value of TMT’s investment in Pipedrive, compared to the previous announced amount as of 30 June 2016, and is equivalent to approximately 14.7 cents in additional net asset value per TMT share last announced as US$1.91 as at 20 June 2016.


AFH Financial Group (AFHP.L) 162.5p £39.2m

The financial planning led wealth management firm, announced the acquisition of the assets of Aberdeen Wealth Management Limited, an Aberdeenshire based IFA, and Shield Direct, a Devon based IFA.  The maximum consideration for Aberdeen is £556.5k and £520k for Shield. The acquisitions are AFH’s second and third corporate transactions of the current financial year and will add approximately £44m to group Funds under Management.


EU Supply (EUSP.L) 12p £8.1m

The e-procurement software provider, has entered into a contract with Vest-Agder County Council in southern Norway for up to 35 local authorities and other public sector bodies to use EU Supply’s CTMTM platform. The contract is expected to generate total revenues of approximately £250k over 8 years, including licenses and support, implementations and integrations, of which approximately £65k of revenues is anticipated to be received in 2017. In addition, EU Supply has entered into three new contracts for customer-paid enhancements of its CTMTM platform with two existing customers, which are expected to generate over £80k in revenues in 2017. Likely to move revenue and costs ahead of FY17E (£3.3m) with profitability in line (£1.15m PBT loss.)


Aggregated Micro Power Holdings (AMPH.L) 68p £25.7m

The specialist in the sale of wood fuels and the development of distributed energy projects has secured £14.1m of funding for the financing of its first peaking plant project Ashford Power Limited. The project is situated on the Kingsnorth Industrial Estate in Kent and is for 21MW of natural gas reciprocating engines selling power to the grid at times of peak demand.  The project  will begin construction immediately with commercial operations expected to start before 1st October 2017.  Finance was provided from funds managed by Triple Point Investment Management LLP and Triple Point Lease Partners.


Portmeiron Group (PMP.L) 947.5p £102m

The manufacturer and worldwide distributor of high quality homewares under the Portmeirion, Spode, Royal Worcester and Wax Lyrical brands confirmed that it expects profit before taxation for the year to 31 December 2016 to be slightly ahead of market expectations (FY16E £7.5m).  The Group expects to report record revenues for the year ended 31 December 2016 of over £76m, an increase of at least 11% above the previous year

Head Chef:

Emily Liu, CFA, CAIA
0203 764 2344

Sous Chef:

Sacha Morris
0203 764 2345

*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 with “unsubscribe me”.