Small Cap Feast
Small Cap Feast – 20th March 2017
Dish of the Day:
No AIM Joiners Today
No AIM Joiners Today
Off the Menu:
No AIM Leavers Today
No AIM Leavers Today
What’s Cooking in the IPO Kitchen?
First Sentinel—Investment company expecting NEX admission/introduction on 24 March. £636k raised pre-IPO.
Medica Group– The UK market leader by revenue in the provision of teleradiology services has priced its Main Market IPO at 135p raising £121m (£106m vendor sale). Admission 21 March.
BioPharma Credit—Targeting $300m + raise on LSE. “This investment trust will give investors access to debt investments tied to the fast growing life sciences industry, offering predictable cash flows over a sustained period of time.” Admission due 27 Mar.
Tufton Oceanic Assets- The Company intends to invest in a diversified portfolio of second hand commercial sea-going vessels where the Investment Manager believes that an attractive opportunity exists in shipping. $150m raise. Admission 3 April.
Ergomed (ERGO.L) 182.5p £73.9m
The Company dedicated to the provision of specialised services to the pharmaceutical industry and the development of new drugs, has announced the initiation of a phase IIb proof-of-concept study for Peprostat, a highly innovative treatment for intraoperative surgical bleeding. Having gained UK Medicines and Healthcare Products Regulatory Agency (MHRA) approval to start the study, the UK participating centres are now starting to recruit patients. PeproStat is a potentially disruptive product which could enter the $2.5bn market for surgical haemostats.
PipeHawk (PIP.L) 5.5p £0.87m
HY Dec 16 results from the dynamic electronic systems development Company developing solutions in the specialist fields of land mines and utilities detection. Turnover of £3m from £2.36m. Pre-tax loss narrowed, from £449k to £180k. At QM Systems, order intake for the first part of the period was buoyant with orders taken of approximately £1.3m in the first three months. Order intake slowed during the latter part of the period, however the outstanding quotes remain considerable with a number of significant contracts awaiting award over the coming weeks. Hopeful that revised H2020 grant application will be successful. There are no forecasts in the market.
CAP-XX (CPX.L) 10.13p £30.14m
HYDec16 results from the specialist in the design and manufacture of supercapacitors, which considerably extend the performance of batteries. Total revenue of A$1.35m was down 18% on the corresponding half year, largely due to disruption of supply, due to a process change at a key supplier. PBT loss of A$1.9m. This issue has now been fully rectified and additional measures have been implemented to prevent any reoccurrence. Significantly higher number of enquiries for very large volumes of small prismatic supercapacitors, including our Thinline products. Encouraging levels of large scale sales opportunities for automotive supercapacitors. The Board is very excited by the recent release of CAP-XX’s new range of cylindrical supercapacitors and supercapacitor modules. Raised £2.4m in January.
Focusrite (TUNE.L) 203p £117.89m
H1Feb 17 trading update from the global music and audio products Company supplying hardware and software products used by professional and amateur musicians. ‘Good progress was made in both the Focusrite and Novation divisions and in all three reported regions, particularly in our important US market.’ Revenue up 12% in constant currencies to £32m. Net cash of £9.4m vs. £4m. FYAug18E rev of £61.85m and EPS of 12.25p. PE of 16.6x.
Maintel Holdings (MAI.L) 962.5p £136.7m
FYDec16 results from the systems integrator and managed services provider. Revenue growth of 114% to £108.3m, including £57.8m contribution from Azzurri. Organic rev growth of 1%, reflecting positive momentum through the year and a H2 recovery. Increase in recurring revenue to 73%. Group adjusted EBITDA increased 63% to £12.6m, including £4.9m contribution from Azzurri. Group adjusted profit before tax increased 52% to £11.1m. Adjusted EPS 78p. Period end net debt of £20.1m, equivalent to 1.6x adjusted EBITDA, comfortably ahead of board expectations. FY Div 30.8p. Keeping an eye on further acquisition opportunities. FYDec17E rev £136,7m and £15.5m PBT PE 11.4x. Yield 3.5%.
Learning Technologies Group (LTG.L) 42p £176.8m
Offer by the integrated e-learning services and technologies provider for NetDimensions (NETD.L), the integrated enterprise talent management software platform provider now declared unconditional at 100p or £53.6m with associated LTG placing of £46.5m at 37.5p.
SalvaRx Group (SALV.L) 27.25p £10.58m
SalvaRx, has entered into an agreement to invest in Rift Biotherapeutics Inc, a private, Delaware-domiciled biotechnology Company focused on the development of antibodies for use in oncology. Under the terms of the agreement, SalvaRx will invest US$1m for an initial holding of approximately 30% (including new shares issued on the conversion of a US$90,000 convertible loan already provided to Rift). “We are excited to announce our investment into Rift which is our fourth portfolio Company. Founders Drs. Miguel de los Rios, Cory Bentley and their team have strong protein engineering capabilities and have discovered several candidate antibodies to novel immune check point targets.”
Tiso Blackstar Group (TBGR.L) 72p £191.36m
HYDec16 results. First set since changed status from investment entity. Now a media focussed business with a strong footprint in Africa. Consolidated turnover increased to R4.5bn (£253m) from R4.3bn (£206m). Consolidated EBITDA increased to R270m (£15m) from R249m (£12m). Interim dividend of 4.47275 cents (0.28465 pence) per share. “The core businesses have performed satisfactorily to date in 2017 with key revenue streams above prior year and earnings growth continuing. The transformation of the business into a multi-platform diversified media company is proving successful and our market-leading brands continue to provide strong cash flows to support future growth.” No market forecasts.
Photonstar LED Group (PSL.L) 2.88p £1.13m
The British designer and manufacturer of intelligent lighting and building control solutions, is participating in the IBM InterConnect 2017 Cloud & Mobile Conference, between 19 to 23 March 2017 in Las Vegas, USA. The Group also announces the commercial availability of the halcyon cloudBMS product from 1 April 2017. PhotonStarTM will be presenting a talk outlining the key features of cloudBMSTM, a new cloud based solution that delivers an Internet of Things ‘building management system as a service’. Paid for trials for halcyonPRO2TM and halcyon cloudBMSTM, are still under evaluation by customers, with several new trials being installed during Q4 2016. Currently there are 9 trial sites enabled with cloud BMSTM.
Michelmersh Brick Holdings (MBH.L) 57.25p £46.6m
FYDec16 results from the specialist brick manufacturer and landfill Company. Turnover up 3.4% to £30.1m. Profit before tax stable at £4.5m. Debt free with a year-end cash balance of £4.7m (2015: £2.9m); dividend doubled again to 2.0 pence per share payable for the period; and strong forward order commitments -well positioned for 2017 operational and financial performance. FY 2017E rev of £30.8m and PBT of £4.4. EPS of 4.3p.
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”.