Small Cap Feast

Small Cap Feast – 22nd March 2017

Dish of the Day:

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Off the Menu:

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What’s Cooking in the IPO Kitchen?

Integumen— Schedule 1 from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.16m at 5p. Expected market cap £8.16m. Admission expected 5 April.

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

ECSC (ECSC.L) 265p £23.83m

15 mth results to December 2016 from the provider of cyber security. All comps are for a 12 month period. Rev of £4.5m from £2.65m. Adjusted EBITDA of £630k.  Reported loss of £517k including exceptional IPO costs. LFL revenue growth of 35% in managed services and 24% in consultancy. Net cash of £5m. “Following on from a strong 2016, our ongoing plan is to significantly scale the business in 2017. The Board assesses the readiness of our clients to buy our services and this, together with the growth in the sector generally, make scaling the business at this time the right approach for ECSC”. Headcount up to 98 from 57 at IPO. FY17E rev of £11m growing to £11.6m for FY18E.

Van Elle Holdings (VANL.L) 90.15p £72.83m

Trading update from the geotechnical contractor offering a wide range of ground engineering techniques and services to customers in a variety of UK construction end markets. Overall trading in Q3, which included significant levels of activity in December and January, was in line with the Board’s expectations. As a result, for the nine months to Jan 2017, the Group delivered total revenues of £70.8 million, representing growth of 16.4 per cent. Conditions in Van Elle’s end markets remained satisfactory throughout the period and the Group continued to focus on generating improving returns through strong operational execution. Some Q4  contracts delayed into next year. Now expecting FY revenue of £93m some 5% below prior expectations. Unlikely to  effect final dividend. Some caution on rail activity for 2018. FYAp18E rev £112m likely to come back a bit.


Rose Petroleum (ROSE.L) 0.13p £4.71m

The natural resource business, has  updated on its Paradox acreage position, with the grant of a five year lease extension on State lands, within the Gunnison Valley Unit, Grand County, Utah.  The Federal Unit consists of a total of 64,482.97 acres of which Rose is earning a 75% working interest in 52,315.51 net acres.   “Due to the progress we are making on the 3D seismic shoot programme, the State has agreed to extend the leases which is a very encouraging show of support. We look forward to updating the market further on the seismic permitting process in due course.”


Haydale Graphene (HAYD.L) 166p £29.28m

HY Dec 16 results from the global technologies and materials group that facilitates the integration of nanomaterials into the next generation of commercial technologies and industrial materials. Total income up 90% year-on-year to £1.5 million. Cash at period end of £1.1 million pending receipt og £3.3m strategic investment by Everpower which could also open up big opportunities in China. “This half year has seen the successful acquisition and integration of two businesses that substantially increases our international reach and broadens our speciality nanomaterials offering. “


Inland Homes (INL.L) 63.5p £128.3m

The leading brownfield regeneration specialist and housebuilder with a focus on the South and South East of England, has secured planning permission to develop 239 residential units and 15,845 sq ft of commercial space at its Lily’s Walk site in High Wycombe, representing a GDV of £75 million. Resolutions to grant planning consent have been secured for a further 992 residential units on sites in Buckinghamshire and Hampshire, including the major development at Chapel Riverside in Southampton.


Octagonal (OCT.L) 2.95p £16.53m

Octagonal has updated on a new business opportunity being developed by its wholly owned subsidiary, Global Investment Strategy UK Limited. The opportunity is in line with the Group’s strategy of utilising its FCA Permissions to diversify and grow revenues through earnings enhancing projects. GIS has incorporated Synergis Capital Ltd as a majority owned subsidiary (“SynerGIS”) for the purpose of issuing an investment bond. SynerGIS has been established to provide commercial asset backed lending and its operations will be independent on the activities of GIS. It is proposed that the SynergisBond be listed on the Irish Stock Exchange and, as such, a draft Prospectus has now been submitted to the Central Bank of Ireland for review.


Futura Medical (FUM.L) 56p £67.34m

The innovative healthcare company focused on advanced transdermal technology, announced that it has signed an exclusive licensing agreement with F Lima SA  for the marketing and distribution of CSD500, Futura’s novel erectogenic condom, in Portugal. It is expected that F Lima, an established Portuguese business that distributes consumer brands into a broad range of retail outlets including supermarkets and pharmacies, will launch CSD500 under the Blue Diamond brand name as soon as practicable.


Randall & Quilter (RQIH.L) 123.5p £89.07m

Acquisition of ICDC, Ltd. a captive insurer of an American Fortune 500 company. The Company, originally incorporated under the laws of Bermuda, was re-domiciled in Vermont effective June 30, 2015. The company reinsured workers’ compensation, commercial general liability, business auto liability, business auto physical damage and property risks of the parent. ICDC, which is in run-off, had a total net asset value of $7.95m as at 31 December 2016 with reserves estimated at circa $2.76m. “This transaction demonstrates our ongoing commitment to continue to acquire legacy insurance assets and also continues to expand our acquisition activity in the North America, Bermuda and the Caribbean region”.


Netalogue Technologies(NEX:NTLP) 4.65p £2.3m

Netalogue has signed a partnership deal with Sage in support of the X3 ERP platform. This deal creates an exciting new route to  market for the Netalogue Ecommerce platform making it more accessible to X3  partners and end users. Netalogue are also attending and sponsoring the Sage Summit next month at ExCel London on the 5th and 6th April 2017.


IMC Exploration (NEX:IMCP) 2p £2.6m

IMC announced the implementation of its work’s programme on its base metal licence area in the highly prospective South West Ireland.  The comprehensive exploration programme consists of geochemistry, geophysics and drilling. IMC holds numerous licences between the Tynagh and Silvermines deposits within this Irish Base Metal Province. These licences are highly prospective, lying proximal to the intersection of the ‘Navan-Silvermines Trend’ and ‘Limerick Trend’, the latter which hosts the deposits at Pallas Green and Kilbricken.


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