Small Cap Feast

Small Cap Feast – 21st March 2017

Dish of the Day:

Medica Group  has been admitted to the Official List.  £121m raised at 135p.

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.

BioPharma Credit—Expected Gross Initial Acquisition Proceeds now c.$338m. Gross Cash Proceeds capped at $423m with placing and open offer. Results expected 23 March with admission  now due 30 march.

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

Good Energy (GOOD.L) 255p £42m

FYDec16 results from  the renewable electricity supplier and generator. Revenue +41% to £90.4m. EPS 9.1p from 1.4p loss. Final div unchanged at 2.3p. Net debt £52.5p. Separately  Good Energy has signed an agreement with DONG Energy which will see it source offshore wind power for its customers for the first time. The deal secures 12% of the output of the 210MW Westermost Rough Wind Farm operated by the Danish energy group in the North Sea, enough renewable electricity to power more than 26,000 average homes.  The agreement is for an initial period of 12 months but is likely to be extended for the longer term as part of the wider co-operation between the two companies. It is also intended that the volume of power purchased by Good Energy from DONG will increase over time.  FYDec17E £102.3m and PBT of £2.08m.


Berkeley Energia (BKY.L) 57p £145.1m

The European Union has welcomed the development of the Salamanca mine by approving the Company’s offtake agreement for the sale of the first production. In November 2016, the Company entered into a sales agreement with Curzon Resources Limited, formerly known as Interalloys Trading Limited, for a total of two million pounds of uranium over a five-year period, with scope to increase to a total of three million pounds. The agreement is for an average fixed price of US$43.78 per pound of contracted and optional volumes, which compares favourably to the current spot price of US$25 per pound and establishes a strong cash margin above the steady state production costs of around US$15 per pound. On track for first production in late 2018.


Judges Scientific (JDG.L) 1,565p £95.65m

FYDec16 results from the group involved in the buy and build of scientific instrument businesses. Revenues up 2% to a record £57.3 million. A record four acquisitions completed during the year:  CoolLED, Dia-Stron, Fire Instrumentation and Research Equipment (“FIRE”) and EWB Solutions for £9.0 million; Final dividend of 18.5p, making a total 27.5p for the year, an increase of 10%; covered 3.1 times by adjusted earnings; Trading performance ‘disappointing’ with adjusted operating profit of £7.1 million (2015: £9.3 million); “Judges commences 2017 with a solid financial position, four new businesses, a strong order book and positive order intake since the start of the year, all of which provides a platform for a year of progress.” FYDec17E £60.6m and EPS of 100.1p.


XL Media (XLM.L) 111.5p £223.4m

The  provider of digital performance marketing services, announced that Dau-Up, its wholly owned subsidiary, has been granted official status as an Instagram Partner, specialising in advertising technology.  The Instagram Partner Program has recognised Dau-Up for its leading position in mobile user acquisition, and identified its proven delivery of improved performance for its partners on the Instagram platform. Dau-Up’s proprietary technology “Rampix” is uniquely tailored for acquiring users for games and mobile apps, leveraging data-driven automation. The combination of Dau-Up’s technology and skills with the performance models offered by the Group, provides a unique opportunity to XLMedia’s customers to attract the right campaign audience. FYDEC17E rev £106.6m, EPS 10.5p, Div 607p.


Fevertree Drinks (FEVR.L) 1380p £1.68bn

FYDec16 results from the supplier of premium carbonated mixers. Revenue up 73% to £102.2m. Gross profit margin of 55.2% (2015: 52.1%). Adjusted EBITDA up 97% to £35.8m (2015: £18.2m). Robust balance sheet with net cash at year end of £26.9m (2015: £11.6m). Final dividend of 4.71 pence per share recommended to shareholders, bringing total dividend to 6.25 pence per share (2015: 3.08 pence per share). “We have had an encouraging start to 2017 and I look forward to working with my Board colleagues and the wider Fever-Tree team to continue to deliver growth” FYDec17E rev of £120m and EPS of 25.92p.  >50x PE.


Keras Resources (KRS.L) 0.4p £6.88m

Keras has announced plans for the proposed listing of the Company’s Australian gold assets on the ASX. Keras and Pharmanet have today entered into a binding agreement whereby Pharmanet will acquire 100% of Keras Australia; Consideration for the Transaction will be satisfied via the issue of ordinary shares in Pharmanet, subject to the achievement of certain agreed milestones. In conjunction with the Transaction, Pharmanet will complete a capital raising, by way of prospectus, targeting a raising of A$8 million, to undertake a major drilling and exploration programme at the  Warrawoona Gold Project, to undertake initial Scoping Studies and to repay the Company’s  Acquisition Finance Facility


Flowgroup (FLOW.L) 3.88p £12.3m

On 8 February, the Company announced that it was actively pursuing the sale of Flow Energy Limited and can now report that, following that announcement, it received a number of indicative offers for that part of the Group. The Company announces that it has selected a preferred bidder and has entered into an exclusivity agreement with this party. Whilst there can be no guarantee that the sale of Flow Energy Limited will complete with this party, or that the sale of Flow Energy Limited will complete at all, the Company expects to make a further announcement in the coming weeks.  Any disposal would be conditional on shareholder approval. FYDec16E £88.6m rev and £25m PBT loss.


mporium Group (MPM.L) 14.88p £76.49m

The mobile commerce specialist has announced the results of a placing. £3.05m raised at 15p. The net proceeds of the Placing will primarily be used to enable the Group to continue with its IMPACT and INSIGHTS product roll-out, in line with the Group’s existing growth strategy. IMPACT is digital advertising technology that enables campaigns to be managed across Google AdWords, Facebook, Instagram and YouTube, by leveraging in real-time, events such as TV content, sports, news, weather and social media. INSIGHTS continues to evolve into a decision making support tool that delivers actionable information to enable users to manage their websites and the digital advertising campaigns that drive web traffic to their websites.



Hunters Property (HUNT.L) 58.38p £16.7m

One of the UK’s largest national sales and lettings agency and franchise businesses, announced the proposed acquisition of the franchising business and related assets of Besley Hill Franchising Limited, the Seller, for a total consideration of £2.5 million together with a placing of new Ordinary Shares at 55p to raise up to £1.32 million which will be used to finance part of the cost of the Acquisition.  An accelerated bookbuild will commence today. Trading ahead of market expectations. Network income for 2016 up 17% to £35.4m. We could find no market forecasts.

The Brighton Pier Group (PIER.L) 109.5p £34.78m

HY Dec 16 results. ‘This has been a transformational period for the Group. The acquisition of Brighton Palace Pier has delivered a strong financial performance for the Group with its first summer trading period in this half year set of results. I believe there are exciting opportunities to further develop the Pier business over the coming years. We continue to make good progress rationalising the Bars division together with driving operational and financial improvements across the estate.’ Sales £17.74m. Adjusted EBITDA £3.5m. Basic EPS of 8.2p. Trading for the first half is in line with market expectations.  FYJun17 rev £3.05m, EPS 7.53p. 14.6x PE,


Head Chef:

Derren Nathan
0203 764 2344

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