Small Cap Feast

Small Cap Feast – 22nd September 2016

Dish of the Day:

No AIM Primary Today

Off the Menu:

No AIM Leavers Today

What’s Cooking in the IPO Kitchen?

Krispy Kreme UK — Press reports that Alcuin Capital Partners, the owner of the doughnut chain is seeking a London float this year

Air Astana — In the press: Kazakhstan ‘s Air Astana intends to list in Kazakhstan. London a strong candidate for secondary listing

Biffa — Intention to float announcement states that up to £270m is to be raised to pay down debt and historic landfill tax liability

Bacanora Lithium — To list on AIM around 28 Sep as holding company for TSX listed Bacanora Minerals at £100m market cap

Breakfast Buffet

Cambridge Cognition Hldgs* (COG.L) 76.5p £15.6m

Solid financial and commercial progress reported in the neuroscience company’s H1Jun16 Interims. Revenue up 11.3% to £3.26m. EBITDA loss more than halved to £0.11m. Product portfolio growing via complementary distribution agreements, and development of wearable platform, Cognition Kit. Balance sheet strengthened by £1.25m April placing at 37p. Continued revenue growth expected H2. FY2016e forecasts of £7.1m sales and £0.1m PBT.

Venn life Sciences* (VENN.L) 28.25p £17m

The growing Contract Research Organisation providing drug development, clinical trial management and resourcing solutions to pharmaceutical, biotechnology and medical device clients, announced the appointment of Mary Sheahan as a Non-Executive Director. She has 20+ years senior experience in publicly listed life sciences companies, most recently as Senior VP of Global Integration and Country Manager for Ireland with Perrigo, a NYSE-listed, $13bn market cap leading global healthcare supplier.

Conroy Gold & Natural Resources (CGNR.L) 65p £2.59m

High grade gold and wide intersections reported in the latest drilling results from Clontibret. High grades and wide intersections included 0.50m at 25.85 g/t gold in one of the already known gold zones and 5.75m grading 5.04 g/t gold in one of the newly discovered gold zones. Five new lodes discovered and continuity confirmed in four know lodes. Deposit remains open in all directions. Further support that Clontibret/Clay Lake could host a multi-million oz deposit.

First Property Group (FPO.L) p £m

AGM Statement from the property fund manager and investor. The Company continues to trade well and in accordance with expectations. Funds under management, including those held by the Group, currently stand at some £393 million, an increase of some £40 million since 31 March 2016, benefitting from new UK investments and a £14m rise due to a strong Euro boosting the value of its Polish and Romanian assets.

Secure Property Development & Investment (SPDI.L) 15p £13.5m

The South Eastern European focused property company has reported H1Jun16 interims. Rental income broadly flat at €2.7m. NAV/share at €0.46 vs €0.47. The period saw the Brovary Terminal in Ukraine fully let, adding ~US$150k of monthly Net Operating Income per month ahead of its proposed H2 sale; the refinancing of a retail property in Bucharest which closed post period; and the sale of a non-core residential portfolio in Bucharest.

LXB Retail Properties (LXB.L) 67.25p £113.22m

The Jersey resident closed-ended real estate investment company focused on edge of town and out of town retail investments, has announced proposals for a £30.3m Return of Cash (18p per share). This Return of Cash is enabled by receipts from previously announced transactions concerning the Group’s Ayr, Kingsmead Stafford and B&Q Greenwich investments and follows previous returns of cash of £64.0m earlier on this year in June and £82.6m in June 2015. The company continues to run off its assets.

(UJO.L) 0.19p £5.34m

The company has raised £700k at 0.17p an 11% discount to yesterday’s closing mid price. The intended proceeds from the Placing are to further expand the Company’s portfolio through the acquisition of interests in near term development and production opportunities onshore UK.

Elektron Technology (EKT.L) 6.88p £12.79m

The global technology group has released H1 Jul 16 results. Revenue down 8% to £17.9m. Underlying operating profit excluding Checkit start up costs +22% to £1.1m. Following the sale of Agar the Group has returned a net cash position for the first time in many years. Raised its selling prices after order drop off post Brexit. The first two weeks of September have seen a reversal in performance, with orders ahead of the same period last year. However visibility is limited.

Proteome Sciences (PRM.L) 10.13p £23.22m

A peer reviewed study led by Proteome Sciences, in conjunction with a group of highly respected universities and hospitals, demonstrates the ability of an innovative mass spectrometry (MS) workflow to dramatically improve the ability to detect tau-derived peptides that are directly related to human Alzheimer’s pathology as early stage biomarkers of the disease.

DJI Holdings (DJI.L) 165.75p £344m

The company has proposed a name change to BNN Technology ‘reflecting its strategy to become one of the leading mobile technology providers in China’. Additionally NewNet, which represents DJI’s technology platform and marketing resources in China, has agreed to acquire a 10% stake in its joint venture partner Xinhuatong and transfers its lottery assets into the Xinhuacai joint venture. Will be seeking to change sector from Tourism and Leisure Services.

Head Chef:

Derren Nathan
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 with “unsubscribe me”.