Small Cap Wrap: Day: October 24, 2016

AIM Breakfast - Archive

21st October 2016

 Petards on the right tracks

Sareum gets its patents

RM2 gets stacking


Applied Graphene Materials (LON:AGM 173.00p/£37.39m)

Applied Graphene Materials, the producer of specialty graphene materials, announced its full year results for the year ended 31 July 2016. Operational highlights showed first production order received from Century Composites, accelerated product development programme with James Briggs with an expectation of product launch in early 2017 and a new collaboration project with Sherwin-Williams Protective & Marine Coatings. Independent test data showing significant benefits of including the Group’s graphene nanoplatelets in coatings. The financial overview showed total revenues of £0.3m (2015: £0.1m), EBITDA Loss of £4.2m (2015: loss of £3.9m) and a Loss before tax of £4.5m (2015: loss of £4.0m). Cash at bank was £7.7m (2015: £4.7m).

Cambridge Cognition (LON:COG 71.00p/£14.52m)*

The neuroscience Company, Cambridge Cognition Holdings, which develops and markets near patient technologies to facilitate the development of treatments for neurological disorders, announced a series of new contracts worth over £0.25m to assess, through CANTAB Connect, the abuse potential of investigational drugs in a new market application for the Company. Cambridge Cognition has become the leading provider of Human Abuse Liability (HAL) assessment technology, helping the Company’s drug development partners to achieve multiple FDA approved abuse deterrent labels. To date the Company has signed 35 HAL contracts following the launch of the CANTAB Connect Abuse Liability product (vs. 8 before 2014), with revenues totalling in excess of £3m (vs. £0.6m before 2014) in a market which is expected to continue to grow.

Cohort (LON:CHRT 347.75p/£145.41m)

Cohort, the independent technology group, announced that its subsidiary MASS has been awarded a nine-year extension to its managed IT service contract for the Sentry Whole Life Support Programme (WLSP) at RAF Waddington. Valued at around £12m, the scope of the support contract now includes replacement of the Maintenance, Repair and Overhaul software and adds an Enterprise Performance Management solution. The team is led by Northrop Grumman with MASS, AAR Corp and Cobham Aviation Services partnering together to support and maintain the availability of the UK’s fleet of Airborne Warning and Control System (AWACS) aircraft.  Northrop Grumman commented that this nine-year extension recognises MASS’s agile response to ever-changing needs and the provision of a first-rate, value for money service.

InnovaDerma (LON:IDP 122.5p/£12.5m)*

InnovaDerma, a UK developer of ‘at-home’ and clinically proven treatments for hair loss, hair care, self-tanning and skin rejuvenation, provided an update on trading ahead of its Final Results for the twelve-month period ended 30 June 2016. The Board announced that it expects revenue and profits for the full year to 30 June 2016 will be significantly higher than the previous year, driven by underlying organic growth across its product range and the contribution of the Skinny Tan business, which was acquired in May 2015. The Group expects to report revenues of approximately AUD8.3m (£4.2m) representing a significant increase of more than 800 percent compared to the previous year FY 2015: AUD1.05m (£0.525m). It expects to announce a maiden net profit as a result of the strong top line growth. The Group has maintained a robust financial position with little external debt and a strong cash position. InnovaDerma significantly expanded its international distribution and retail network and this has been a key driver to its growth and strong financial performance. As at 30 June 2016, the Company has in excess of 2,500 retail points (FY2015: 250) in seven countries.

Kibo Mining (LON:KIBO 7.33p/£26.76m)

Kibo Mining, the Tanzania focused mineral exploration and development Company, announced that it has reached agreement with SEPCO III on the total direct development cost related to the MCPP (Mbeya Coal to Power Project). It was agreed that the direct development cost incurred on the MCPP over the past four years will be considered for determining the final development cost refund amount. After considering all information provided in this regard, the final amount is $10.9m, which was accepted by both parties as a fair reflection of the MCPP development cost over the past four years. Based on this, the total amount refundable to Kibo constitutes an amount of $5.5m, i.e. 50 percent of the total development cost as per the terms of the Agreement between SEPCO III and the Company, announced on the 25 August 2016. As Kibo has already received an advance of $1.8m, the total outstanding amount payable to Kibo will be £3.7m.

Milestone Group (LON:MSG 1.30p/£10.02m)*

Milestone, the provider of digital media and technology solutions, announced that it has agreed to issue 92,333,332 new ordinary shares of 0.1 pence per share in the Company, subject to admission to AIM, raising £1.385m before expenses, at a price of 1.5 pence per share. The proceeds of the Placing will be used for marketing of the newly launched Alchemy e-media platform, recruiting key staff, and additional development of the Passion Project platform.

Petards Group (LON:PEG 18.50p/£6.43m)*

Petards, the software developer of advanced security and surveillance systems, announced that it has been awarded a contract to supply Great Western Railway with Petards eyeTrain systems. The new contract, which is worth approximately £6m, is for the design, development, supply and installation of eyeTrain systems to be fitted to Class 165 and 166 Diesel Multiple Units trains.  The developed systems add substantial new software driven functionality to Petards’ existing eyeTrain solutions. Engineering development is already underway and will make a contribution to 2016 revenues. This is expected to be completed by the third quarter of 2017 when deliveries of the integrated systems will commence with scheduled completion by the end of 2018.

ProMetic Life Sciences (TSX:PLI CAD3.21/CAD1,997.47m)*

ProMetic Life Sciences announced that its Phase 2 clinical trial in patients with metabolic syndrome and type 2 diabetes has been completed and has met its primary and secondary endpoints. In addition to safety and tolerability, the study was designed to evaluate the effect of PBI-4050 on metabolic syndrome parameters as well as on pro-inflammatory/fibrotic and diabetic biomarkers in blood and urine. The pharmacological activity of PBI-4050 was confirmed through the clinically significant reduction in HbA1c between screening and Week 12. For instance, the 15 patients with a screening HbA1c ≥ 7.5 experienced a mean decrease of – 0.75% (p = 0.0004) while the 9 patients with a screening HbA1c ≥ 8.0% experienced a mean decrease of – 0.9% (p = 0.007). The 10 patients who participated in the study’s 12 week extension had a mean HbA1c of 7.7 at screening and experienced a reduction of – 0.8% at week 12: this reduction was maintained at week 24.

RM2 (LON:RM2 25.92p/£103.92m)

RM2, the sustainable composite pallet innovator, announced that it has received a commitment from a global leader in temperature-controlled warehousing and logistics to the food industry, for the deployment of RM2 pallets and management of the Company’s pallet pool.  The deployment of pallets will start immediately and based upon the success of the initial locations, the business is projected to encompass the Company’s North American network. It is anticipated that the agreement will require over 200,000 pallets.

 Sareum Holdings (LON:SAR 1.1p/£29.15m)*

Sareum, the specialist cancer drug discovery and development business, announced that the Japan and Singapore Patent Offices have issued notifications that patents will be granted for inventions associated with Sareum’s Aurora+FLT3 kinase inhibitor programme. These patents* describe compounds that inhibit the activity of Aurora and FLT3 kinase enzymes and the medical use of these compounds, particularly in the treatment of cancer. The granting of this patent in Japan means that Sareum will now have approved patent protection in all major territories for its Aurora+FLT3 kinase inhibitor programme. The Company announced that similar patents were to be granted in the USA and Europe in September 2015 and in China in August 2016.

Vianet Group (LON:VNET 100.50p/£28.11m)

Vianet Group, the leading provider of real time monitoring systems, data management services and business intelligence for the leisure and vending sectors, provided the following trading update ahead of the Group’s results for the half year ended 30 September 2016, which are scheduled for release on Tuesday, 6 December 2016.Trading for the Group’s continuing businesses for the first half of the current financial year was ahead of the same period last year, achieving good growth in line with the Board’s expectations. Against that background, the Board intends to declare a maintained interim dividend of 1.7p per share. The Group’s UK core beer flow monitoring operations, including iDraught, has continued to strengthen its market position and maintained its contribution, and encouragingly there are signs that the rate of pub closures in the sector has slowed down. Vending Telemetry has continued to extend its penetration of the European market which has helped deliver first half growth, with good ongoing prospects.

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24th October 2016

Filta— Schedule One from  the provider of a number of services to national and independent commercial kitchen operators and owners.   Targets early November listing. Capital raising plans as yet undisclosed

TI Van Elle—The geotechnical contractor to the UK construction market is hoping to come to AIM later this month

Ascot Lloyd— The UK IFA is also hoping to join AIM later this month. Ascot Lloyd’s strategy is to grow through a combination of organic growth and further targeted acquisitions.