Small Cap Feast

Small Cap Feast – 20th March 2017

Dish of the Day:

No AIM Joiners Today

Off the Menu:

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.


Breakfast Buffet

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.


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