Small Cap Feast
Small Cap Feast – 19th September 2016
Dish of the Day:
No Primary Today
No Primary Today
Off the Menu:
Galasys (GLS) to leave AIM. Has not sought a replacement NOMAD in the light of Board/shareholder disputes.
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
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.
0203 764 2344
*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 firstname.lastname@example.org with “unsubscribe me”.