Small Cap Feast

Small Cap Feast – 21st October 2016

Dish of the Day:

No AIM Primary Today

Off the Menu:

No AIM Leavers Today

What’s Cooking in the IPO Kitchen?

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.

Breakfast Buffet

Bagir Group (BAGR.L) 3.5p £1.77m

Trading update from designer, creator and provider of innovative tailoring. ‘2016 continues to be a successful year for Bagir. We are trading in line with market expectations for this financial year and we are making significant progress under our strategic plan to maintain this momentum across the business into 2017 and beyond.‘ EGM today to approve £6.4m placing. FYDec16E revenue of £48.16m and pre-tax loss of £2.29m.

Immunodiagnostic Systems (IDH.L) 207.5p £61.04m

H1Sep16 trading update from the specialist producer of manual and automated diagnostic testing kits and instruments for the clinical market. Revenue is expected to be £19.5m vs £19.4m.   On a like for like basis (i.e. at constant scope and constant exchange rates) revenue decreased 9%. Cash of £28.7m. The focus is on improving sales processes and capabilities, and strengthening the product pipeline through internal development and external partnerships. The next intermediate goal is to stabilise revenue on a like for like basis.

Time Out Group (TMO.L) 141p £183.3m

The global multi-platform media and e-commerce business with food & cultural markets, is pleased to announce it has acquired YPlan, on a debt free cash free basis.  London-based YPlan is the “mobile-first” events discovery and booking platform. It offers a mix of event tickets on its app and website allowing people to discover and book things to do in the city. The consideration is £1.6m payable in TMO shares. The transaction is expected to be mildly dilutive to Time Out’s earnings in the current financial year and broadly neutral in 2017.  There are no forecasts in the market.

Michelmersh Brick Holdings (MBH.L) 63p £51.18m

Q3 trading update from the specialist brick manufacturer & landfill company.  The UK brick market has been experiencing falling output and a small increase in despatch volumes as manufacturers respond to market demand. Anticipated price increases have been difficult to put through. FY expectations revised to be in line with 2015 (£29.07m revenues, EPS 4.44p vs current consensus of £31.9m and 4.9p). Order book remains strong, 5% ahead of H1 & cost savings identified that help to mitigate the effect of negative market trends.

Starcom (STAR.L) 2.62p £3.57m

The technology company specialising in the development of wireless solutions for the remote tracking, monitoring and protection of a variety of assets and people, has conditionally raised £300,000 with new and existing shareholders at a price of 2.5p. The proceeds of will be used to provide the Company with additional working capital.  The Board is increasingly confident that Starcom will at least meet the expectations, outlined at the time of the interims, for improvement in revenues for 2016. FY16E revs £4.87m and breakeven PBT.

Abzena (ABZA.L) 42p £57.59m

The life sciences group providing services and technologies enabling the development and manufacture of biopharmaceutical products, notes that Gilead Sciences, Inc. has announced top line Phase II clinical study results of its product, GS-4997 (selonsertib) in combination with the investigational monoclonal antibody, simtuzumab (SIM) or SIM alone, in patients with non-alcoholic steatohepatitis (NASH). GS-4997 demonstrated anti-fibrotic activity in an open-label Phase 2 clinical trial that included 72 patient.

Trinity Capital (TRC.L) 1.75p £3.68m

The boutique investment banking firm  has conditionally agreed to dispose of all remaining assets held jointly with Immobilien Funds for approximately £8.8m. The agreement requires that the main disposals be concluded within eight weeks, failing which it will terminate. The Company will make a further announcement to Shareholders as and when it has further clarity regarding the completion of the disposals of assets.

European Metals Holdings (EMH.L) 29.88p £37.02m

‘Outstanding lithium recoveries’ during  the on-going pre-feasibility study  at Cinovec in the Czech Republic. Wet magnetic separation achieved a near pure lithium mica concentrate grading 2.85% Li2O with a lithium recovery of 92%. Lithium recoveries are 10-15% higher than those achieved via floation in  scoping study. Total Indicated Resource of 49.1Mt @0.43% Li2O & Inferred Resource of 482Mt @0.43% Li2O containing  combined 5.7 Mt Lithium Carbonate Equivalent; the largest in Europe.

DX Group (DX.L) 88p £37.6m

The independent parcels, mail and logistics operator, notes today’s announcement by the UK Competition and Markets Authority  regarding the Company’s acquisition of the trade and assets of The Legal Post (Scotland) Limited and First Post Limited. The CMA has confirmed that its investigation into the acquisition is now closed and that no further action will be taken. Targeting full integration by end of 2016. FYJun17 revenues of £297.6m and 4.83p EPS. Dividend 2.5p.

RTC Group (RTC.L) 53.5p £7.78m

Trading update from the company engaged in the recruitment of human capital resources and the provision of managed services.  Whilst trading in H116 was in line with expectations, H2 has seen delays in the commencement of infrastructure projects affecting the short term performance of ATA, primarily in their permanent vertical market activities. Consequently full year results are expected to be lower than current market expectations.  FYDec16E £71,6m rev and £1.6m PBT. Delayed projects expected to start in near future.

Head Chef:

Emily Liu, CFA, CAIA
0203 764 2344

Sous Chef:

Sacha Morris
0203 764 2345

*A corporate client of Hybridan LLP


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