Small Cap Feast

Small Cap Feast – 1st December 2016

Dish of the Day:

No AIM Joiners Today

Off the Menu:

No AIM Leavers Today

What’s Cooking in the IPO Kitchen?

Big Sofa Technologies— Schedule 1 from the b2b technology company providing video analytics at an enterprise level. Seeking to complete RTO of unlisted HubCo investments. Raising £6.1m. Target date 19 December.

ECSC—Schedule 1 from provider of cyber security services. Raising £5m. Vendor sale £0.8m. Target date 14 Dec. Expected market cap £15m.

RM Secured Direct Lending  –  The secured direct lending fund  intends to float on the Main Market on 15 December raising up to £100m

Creo Medical Group – UK based medical device company focused on surgical endoscopy, a recent development in minimally invasive surgery. Admission due 7 December. Fundraising details TBA.


Breakfast Buffet

Mobile Streams (MOS.L) 8.12p £3m

The emerging markets focused mobile media company intends to raise circa £1.6m at 4p (a 50% discount to yesterday’s closing bid price) via accelerated bookbuild and an offer for subscription on PrimaryBid. The proceeds are to be used to finance the rapid growth in working capital required by the Company’s plans and to enable the Company to commit to its proposed marketing spend in India through to the end of the next financial year in 2018.


Caledonia Mining (CMCL.L) 83.5p £43.8m

The Company confirms that, following the recent introduction of “Bond Notes” by the Reserve Bank of Zimbabwe (RBZ), there is no change to the settlement system in place for Blanket Mine in Zimbabwe for its gold sales.  Since January 2014, Blanket has sold all of its gold production to Fidelity Printers and Refiners Limited, which is a subsidiary of the RBZ.  Blanket has received all sale proceeds within 48 hours of delivery to Fidelity in US dollars at a price which is 98.75% of the London afternoon “fix” on the day after delivery to Fidelity.


Clinigen (CLIN.L) 755p £868.96m

The global pharmaceutical and services company  has announced that Halaven® (eribulin) is now registered by the Medicines Control Council (MCC) in South Africa for the treatment of women with locally advanced or metastatic breast cancer who have progressed after at least two chemotherapeutic regimens for advanced disease. Eribulin was discovered and developed by Eisai and will be available to people in South Africa through a partnership with Equity Pharma, part of Clinigen’s Link Healthcare division.


Character Group (CCT.L) 435p £91.96m

FYAug16 results from the designers, developers and international distributor of toys, games and giftware. Revenue up 22.1% to £121m. Underlying PBT up 22.5% to £12.5m. Final dividend up 33%, total for the year 15p, up 36% over 2015. Net cash up 53.3% to £6.9m. Initiatives introduced to mitigate dollar strength. Will update on Xmas trading at AGM in Jan 2017.  FYAug17E revenue 120m and PBT of £15m. 8.7x PE. 3.9% Yield


Forbidden Technologies(FBT.L) 11.25p £16.93m

The cloud video platform owner has announced a £3m placing at 10p  a discount of 11% to yesterday’s close. The net proceeds of the Placing, which will be approximately £2.81 million, will be used to increase the Company’s sales and sales support capabilities, effectively resource larger contracts with new customer implementation capabilities, respond more rapidly to additional revenue related product development requirements and strengthen the Company’s balance sheet for larger strategic sales.


IMPAX Asset Management (IPX.L) 49.5p £55.22m

FYSep16 results from the  investment manager focused on environmental markets and related resource efficiency sectors.   Assets under management and advice increased 59% to new peak of £4.5 billion  rising further to £4.7 billion by 31 October 2016.  Record net inflows of £496 million over the 12 months and encouraging mandate pipeline . Operating profit of £4.2m from £3.1m.  Final divi of 1.6p from 1.2p. Given the powerful long term drivers and notable shorter term catalysts in its investment universe, IMPAX expects the trend of above-average earnings growth in this area to persist for many years.


Nakama Group (NAK.L) 1.75p £2.06m

In-line HYSep16 results from  recruitment consultancy working across UK, Europe, Asia and Australia providing staff for the Web, Interactive, Digital media, IT and Business Change sectors. Pre-tax loss of £63k vs £169k profit off flat Net Fee Income (2.9m vs £3m). Contractor revenue increased by 4.3% £9.3m. Revenue across the APAC region increased by 14.7%. We see a stronger second half of the year from the Group as a whole this year compared to a softer second half last year. The outcome for the period reflects the Group’s commitment to strengthen existing business lines whilst supporting new ones.”


Cluff Natural resources (CLNR.L) 2.58 £8.48m

The natural resources investing company  announced a significant increase in P50 Prospective Resources on its 100% owned Licence P2252 from 162BCF to 636BCF primarily due to the newly named Pensacola Prospect, which the Company estimates to have P50 Prospective Resources of 424 BCF, providing significant exploration upside potential on the licence.  Increases  combined P50 Prospective Resources to 2.37TCF contained within a small number of low cost, high impact exploration opportunities  close to new or proposed infrastructure.


Formation Group (FRM.L) 3p £6.62m

The provider of professional construction management services to its clients in the property sector,  following extensive discussions amongst its board, including with representatives of its major shareholders, has concluded that it is in the Company’s interests to cancel its quoting on AIM and apply for the ordinary shares of the Company to be admitted to trading on the ISDX Growth Market. The Board decision has taken account of, amongst other things, the relative costs of maintaining a quotation on AIM and the limited liquidity in the Company’s shares.


Defenx (DFX.L) 3p £6.6m

The mobile security software solutions company, has secured a partnership agreement with a European software developer to distribute its parental control software suite in Ukraine and across Eastern Europe and the CIS. Defenx Parental Control, the first solution developed with the Company’s Software Development Kit, has already secured a 75,000 unit pre-order.  The Company will sell both its own branded Defenx Parental Control, mainly to retailers, and a white-label version.  Launch is scheduled for Q12017 in Ukraine and will then be rolled out across Eastern Europe and other CIS countries. Further 2017 partnerships anticipated.


Head Chef:

Derren Nathan
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 with “unsubscribe me”.