Small Cap Feast

Small Cap Feast – 20th January 2017

Dish of the Day:

No AIM Joiners Today

Off the Menu:

Cancellation of Arria NLG

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

MySale Group (MYSL.L) 125.5p £189.54m

HYDec16 trading update from the online retailer.  A strong first half with underlying EBITDA up 100% to c.A$3.0m (H1 FY16: A$1.5m). Maintaining recently upgraded full year guidance. Online revenue increased 18% to A$126.5m. Strong balance sheet with net cash balance increased to A$29.1m from A$27.5m at end of June 2016 and A$23.4m at 31 December 2015 . The group is pleased to confirm it has launched a strategic partnership with US online retailer, part of the Hudson’s Bay Company, which represents another important step in the development of the group’s retail marketplace platform.


Abzena (ABZA.L) 35.75p £79.02m

The life sciences group providing services and technologies to enable the development & manufacture of biopharmaceutical products, has signed a licensing agreement with a San Diego-based biopharmaceutical company for Abzena’s novel site specific ThioBridge™  antibody drug conjugate (ADC) linkertechnology. ThioBridge™ links antibodies and other proteins to drugs. The technology platform is unique in its ability to maintain the stability of the antibody and a consistent Drug-to-Antibody Ratio (DAR), which provides a more homogeneous product.  The value of the agreement to Abzena has the potential to reach over $300m in licence and milestone payments plus royalties on any products eventually approved.


Elecosoft (ELCO.L) 30p £23.13m

FY 31 December trading statement from the specialist international provider of software and related services to the architectural, engineering, construction, retail and digital marketing industries. The Board expects that profit before tax for the year will be significantly ahead of market expectations before costs associated with the acquisition of Integrated Computing and Office Networking Limited (ICON).   Record sales due principally to substantial growth in sales of its Asta Powerproject® software applications and its Bidcon® estimating software together with corresponding increases in training and consultancy revenues. Sales benefited in the latter half of 2016 from the currency effect resulting from the Brexit vote.  Bullish outlook on 2017. FY16E revenue £17.3m, PBY £1.4m.


Character Group (CCT.L) 520p £109.9m

Trading update from designers, developers and international distributor of toys, games and giftware. “Whilst we are confident that the market expectation for the 2017 financial year shall be achieved, we expect the results for the first half to be lower than those reported in the comparative period last year. In the four months to December 2016, sales were marginally lower than the same period last year and as expected UK gross margin was adversely affected by the devaluation of sterling.  The steps taken to mitigate the reduction in margin are currently starting to take effect and will be fully implemented in the second half.  We are expecting both our international and domestic sales to grow.” Balance sheet continues to strengthen. Maintaining progressive dividend policy. FYAug17E rev £126m and PBT £15.4m.


Avacta Group (AVCT.L) 73p £49.9m

AGM update from the developer of Affimer® biotherapeutics and research reagents. Custom Affimer order book grown 70% yoy. Half year revenue, operating losses and cash balances are in line with market forecasts.  Multiple paid-for technology evaluations and collaborations now ongoing with: 4 out of the top 10 global large pharma and more than 10 other biotech and pharma companies; 8 research tools companies; and several diagnostics companies including 1 of the top 3. Several technology evaluations underway that could lead first reagents license deals in 2017. In-house immune-oncology programme making progress. FYJul17E rev £2.95m, and LBT £7.61m.


Midatech Pharma (MTPH.L) 144p £70.13m

FyDec16 trading update from  the international specialty pharmaceutical Company focused on developing and commercialising products in oncology. “With a diversified strategy, multiple sources of revenue and an innovative R&D pipeline, Midatech continues to make good progress across the Group. Reported total revenues for the twelve months ended 31 December 2016 are expected to be approximately £9.0m (2015: £1.4m).” vs consensus forecasts of £8.58m.


BrainJuicer Group(BJU.L) 595p £72.6m

FYDec16 trading update from the marketing and brand consultancy with solutions based on behavioural science. BrainJuicer traded strongly during 2016, regaining momentum after the modest growth of the 2 previous years.  For the 12 month period, gross profit, “our main top line indicator”, increased by some 27% to approximately £25.6m, driven primarily by continued strong progress by the US business and an encouraging recovery in Continental Europe.  Excluding the FX the increase in gross profit was some 15 %.  Even after a much higher level of bonus payments, compared with a negligible pay out in 2015, Pre-tax profit for 2016 is expected to be some 37% higher at around £6.2m.


Biome Technologies (BIOM.L) 107.5p £2.52m

FYDec16 trading statement. Group revenues for the year were £4.6m, slightly behind the 2015 revenues of £4.9m. Revenues in the Bioplastics division were £1.6m, a decrease of 15% on the 2015 turnover of £1.9m due to the lower levels of campaign runs in the first half of 2016. The second half of 2016 saw sales of £1.0m which is 18% higher than the 2015 comparative.  The second half of the year also saw some initial quantities of the new BiomeMesh filter product sold. The RF division finished the year strongly and achieved full year revenues of £3.0m, which is the same as the 2015 revenues of £3.0m.  Cash of £1.5m. EBITDA loss in line with 2015. 2017 started encouragingly.  There are no market forecasts.


Bonmarché Holdings (BON.L) 79p £39.5m

13 and 39 week trading statement to 24 December from one of the UK’s largest women’s value retailers. Sales for the 13 weeks ended 24 December 2016 increased by 3.3% against the corresponding period in FY16, and store LFL sales increased by 0.8%. Sales for the 39 weeks ended 24 December 2016 decreased by 1.3% and store LFL sales decreased by 5.3%. A less promotional stance was taken throughout the quarter and whilst this impacted overall sales volumes it resulted in stronger gross margin performance, with product gross margin in the quarter 2.2% higher than in last year’s corresponding period.  FYMar17E PE 9.2x and 8.8% yield.


Pacific Industrial and Logistics REIT(PILR.L) 119.5p £25.6m

The real estate investment trust focused on sub £10m lot size industrial and logistics properties, has completed the acquisition of a site at Park Road, Holmewood Industrial Park, Chesterfield for a total consideration of £4.8m . The acquisition has been financed by the proceeds of the placing of 11.1m new ordinary shares in the Company at a price of 100 pence per share announced on 9 November 2016. It will be refinanced under terms agreed with the Company’s debt facility provider at a loan-to-value of 45%. Adjusted NAV/share 123.87p @ 20 Sep 2016.


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