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
emily.liu@hybridan.com

Sous Chef:

Sacha Morris
0203 764 2345
sacha.morris@hybridan.com

*A corporate client of Hybridan LLP

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