Small Cap Feast

Small Cap Feast – 19th September 2016

Dish of the Day:

No Primary Today

Off the Menu:

Galasys (GLS) to leave AIM. Has not sought a replacement NOMAD in the light of Board/shareholder disputes.

What’s Cooking in the IPO Kitchen?

Hollywood Bowl — The UK’s largest bowling operator will place £181.3 at 160p. Vendor placing. Admission 21 Sep. £240m mkt cap

Biffa — Intention to float announcement states that up to £270m is to be raised to pay down debt and historic landfill tax liability

Misys — The press reports that the Banking Technology provider owned by Vista Equity Partners is seeking a £5.5bn float in London

Bacanora Lithium — To list on AIM around 28 Sep as holding company for TSX listed Bacanora Minerals at £100m market cap

Breakfast Buffet

Paragon Entertainment (PEL.L) 2.65p £4.97m

The attractions design, production and fit-out business, has announced that it has appointed John Dobson, currently Chief Operating Officer, to the role of Chief Executive Officer. Mark Pyrah, current Chief Executive Officer and co-founder of Paragon will move into the role of Development Director.

Watchstone Group (WTG.L) 216p £m

The technology provider to the insurance, automotive and healthcare industries has responded to Slater and Gordon’s (ASX:SGH) intention to file a claim in respect to the acquisition of WTG’s professional services division in May 2015. £50m is due for release to Watchstone from a Warranty Escrow account relating to the disposal in November 2016. Some of this money may remain in Escrow to cover contingent liabilities from such a claim.

Metminco (MNC.L) 0.165p £6.01m

Metminco has completed a A$1m capital raising priced at A$0.00237 (£0.00135). The funds will be applied towards the completion of a Feasibility Study at the Company’s 100% owned Miraflores Project and for working capital. The Scoping Study on an underground only mining operation producing approximately 50,000ozs of recovered gold per annum at life of mine cash cost of US$ 555 per oz for over 9 years, is considered to be financially robust and hence represents a viable development option.

Stride Gaming (STR.L) 242.5p £161.3m

The soft online gaming operator, reports that trading in the second half of the financial year has been very strong. As a result, the Board now expects its results to be ahead of market expectations, with Net Gaming Revenue for the year ended 31 August 2016 to be not less than £47m (2015: £27.8m) and EBITDA to be not less than £12.3m (2015: £7.3m), notwithstanding that the prior year contained only nine months of the Point of Consumption tax. On 12.8x current year consensus ahead of the likely upgrades.

StatPro Group (SOG.L) 107.5p £69.57m

The cloud-based portfolio analysis and asset pricing services provider for the global asset management industry, announces that its subsidiary, Infovest, has entered into a new extended contract for a minimum of £1.0 million with a large North American asset manager. StatPro acquired 51% of Infovest in February. This deal is the fourth contract win for Infovest since the acquisition (three of these being from outside Infovest’s South African home market). 38.4x PE for 2016E falling to 29.1x for 2017E.

Terra Capital (TCA.L) $0.82 $56.2m

The investment company focussed on investing in value opportunities globally, primarily in frontier markets, announced H1Jun16 results. The NAV/Share stood at $0.939 against $0.925 at the end of 2015. Including the 3.24c dividend this represents a total return for the six month period of 5.02% which compares favourably to the MSCI Frontier Markets Index which declined by 0.13% since 31 December 2015 .

Real Estate Investors (RLE.L) 70.5p £104.4m

The Birmingham based property group and UK listed REIT, today has announced H1Jun16 results. Gross property assets of £194.5 million, up 23.5%. EPRA NAV per share of 63.1p, down 2.2%. Q2 dividend of 0.625p, making total dividend for the first half of 1.25p, up 25%. Annualised contracted rental income increased to £15.6 million, up 31%. EU referendum has provided opportunities. Investment demand remains strong. Weak Sterling boosting foreign demand.

Gateley Hldgs (GTLY.L) 116.5p £123.95m

The national full-service commercial law firm, has acquired the UK surveyors Hamer Associates, leading specialists in the fields of Easements and Wayleaves and Compulsory Purchase and Compensation. £1m up front and up to £1m deferred consideration. In the year ended 31 March 2016, Hamer Associates generated revenues of £1.2 million and operating profit of £292,000. The Board expects the acquisition to be immediately earnings enhancing. FYApr17E revs of £13.05m. EPS 9.75p. Div 6.5p.

Amryt Pharma (AMYT.L) 19.25p £40.1m

The clinical-stage specialty pharma company focused on best-in-class treatments for orphan diseases, has announced the appointment of Mark Sumeray, MB BS, MS, FRCS, as Chief Medical Officer with immediate effect. Dr Sumeray has over 17 years’ experience in the pharmaceutical, medical devices and biotech sectors both in the US and UK. Most recently, he spent approximately five years as Chief Medical Officer at Aegerion Pharmaceuticals, a US-based orphan disease biotech company.

7Digital Group (7DIG.L) 6.37p £7.38m

The B2B digital music and radio services company, has signed a contract with grandPad®, a provider of technology solutions specifically designed for senior citizens. 7digital will power a music service which comes pre-loaded onto grandPad’s simple and secure tablet device. grandPad recently announced partnerships with hardware, software and services company Acer and major Swiss telecommunications provider Swisscom to facilitate grandPad’s growth. Revenues expected this year.

Head Chef:

Derren Nathan
0203 764 2344

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