Small Cap Feast

Small Cap Feast – 23rd February 2017

Dish of the Day:

No AIM Joiners Today

Off the Menu:

No AIM Leavers Today

What’s Cooking in the IPO Kitchen?

Sealand Capital— Publication of prospectus regarding the Reverse Take Over of SecureCom. The business of the Target is the operation of Metalk, a secure mobile communication software application that serves corporate executives and business people across the APAC region . Raising £1.4m at 20p. Readmission to Standard List expected 28 Feb.

Anglo African Oil & Gas— Admission expected early March. Acquiring stake in producing near offshore field in the Republic of the Congo.

Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play

Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime.  Issue closing 23 Feb.


Breakfast Buffet

Ferrum Crescent (FCR.L) 0.19p £4.08m

The metals developer, announced the results from its internal soil geochemistry and channel sampling at the Toral project, Spain. Detailed mapping, sampling and remodelling work carried out over the last three months has yielded positive zinc results.  The Company also announced a limited, shallow diamond drilling programme to target mineralised zones within 200 metres of the surface, which is expected to commence in Q2 2017. Various mineralisation styles near surface, including: 0.9m @ 10.5% Zn & 2.5% Pb average achieved on main structure within Adit 49, and 1.2% Cu, 6.5% Zn & 13.5% Pb returned from a 1.2m channel sample in Adit 54. 13 hole drill programme plan generated to intersect shallow untested targets within the  main anomalous area.


Fitbug Holdings* (FITB.L) 0.16p £2.8m

The digital wellness provider for corporate organisations, yesterday announced a new contract for a one year programme to serve select UK-based employees of an international FMCG (Fast moving Consumer Goods) company. This programme will be administered in collaboration with Olympic gold medallist Sally Gunnell, OBE.

Fitbug can confirm an initial contract value of £36,000 in revenue, but client confidentiality does not allow for the disclosure of further details at this time.


Tristel (TSTL.L) 150p £63.6m

HY Dec16 results form the manufacturer of infection prevention, contamination control and hygiene products. Revenue up 22% to £9.75m. Overseas sales up 45% to £4.2m, representing 43% of total sales (2015: 36%). Adjusted EPS before share based payments up 14% to 3.30p. Interim dividend of 1.40p per share (2015: 1.14p), an increase of 23%. Cash of £3.9m (2015: £4.3m) post £1.1m for acquisition. Strategic targets remain achievable including 10-15% average rev growth over next 3 years,  to attain a profit before tax and share based payments margin of at least 17.5%, whilst investing in future growth and to return cash that is surplus to the operational and investment needs of the business in the form of special dividends. FYJun17E rev £19.57m and £3.61PBT, div 3.43p.


Empyrean Energy (EME.L) 3.5p £7.76m

The oil and gas company has received the second and final tranche of $2.6m relating to the sale of its  3% working interest in the Marathon Oil operated Sugarloaf AMI. Negotiations with international and domestic contractors for the acquisition of 3D seismic for the Company’s recently acquired 1,800 km2 offshore China conventional Pearl River Mouth Basin Project are progressing well.  Empyrean hopes to finalise negotiations with a view to commencing the programme in Q2. The Project, approximately 200km South East from Hong Kong, is directly South of a large producing field and importantly contains a further ten leads which have been mapped and that will require follow up exploration work.


StatPro Group (SOG.L) 90.5p £58.57m

The provider of cloud-based portfolio analysis and asset pricing services for the global asset management industry, has increased its shareholding in Infovest Consulting (Pty) Ltd, a South African headquartered software provider, specialising in data warehouse, ETL and reporting software for the asset management industry, from 51.0% to 72.7%. The consideration for the additional 21.7% shareholding was ZAR 19.1 million (£1.2 million) in cash. Expected to be earnings enhancing in the current year. The multiple is just under eight times EBITDA. “Since we took a majority share on 1 March 2016, Infovest has experienced a 77% revenue growth and 130% profit growth.” FYDec17E £38.67m and £3.33m PBT.


Global Invacom Group (GINV.L) 7.75p £20.12m

FYDec16 results from the  fully integrated satellite equipment provider. Revenue US$127.3 million (FY2015: US$129.1 million) including first full-year contributions from U.S. subsidiary Global Skyware. Gross profit improved 4.5% to US$26.0 million (FY2015: US$24.9 million). Loss after tax US$2.7 million following restructuring of Chinese manufacturing facilities (2015: US$1.1 million loss). Cash and equivalents  stood at US$7.9 million. Net cash generated from operating activities was US$3.2 million compared to US$0.5 million used in operating activities for FY2015; offset by the purchase of property, plant and equipment and the repayment of shareholder loans. Closely monitoring effect of recent political changes on international trade.


Monitise (MONI.L) 2.62p £60.16m

HYDec16 results from  the digital technology group specialising in financial services. Revenues down from £33.4m to £28.2m but turnaround from £30.2m EBITDA loss to £0.3m profit. Cash £27.3m from £42.1m at year end. FY revenue decline expected but capital spending to reduce and focus moving to the Company’s FINkit platform which ‘solves the challenge banks face when seeking to accelerate the delivery of compliant digital services to their customers.‘  FYJun16E rev of £58.9m and £16.1m pre-tax loss.


Koovs (KOOV.L) 45.5p £79.8m

The fashion-forward business focused on the young Indian e-commerce market  has partnered with Masaba Gupta to launch its latest collaboration of sporty athleisure wear, Masaba X KOOVS. The daughter of legendary West Indies cricketer Viv Richards and Bollywood actress Neena Gupta, Masaba not only has an unparalleled pedigree in India, but is also the go-to designer for many Bollywood stars, renowned for her impeccably-cut feminine shapes and unconventional fun prints.  The launch follows Koovs recent nine-months trading statement with sales up 101% year on year to £13.45 million, over 100% growth in web visits and social followers, and mobile transactions up by 151%.


IronRidge Resources (IRR.L) 22.62p £53.9m

Exploration update on its project portfolio in Chad, Central Africa.  4km trenching programme commenced at the Dorothe gold prospect to test the broader 3x1km mineralised zone defined by extensive artisanal workings. Reconnaissance rock chip sampling at Nabagay returns results of 34.1g/t, 3.76g/t, 2.53g/t and 1.9g/t gold over a newly defined target from the regional structural interpretation. “The structural interpretation has been vindicated by a grass-roots gold anomalies without the presence of artisanal workings and provides a valuable platform for future exploration growth.”


BOS Global (BOS.L) 7p £4.7m

The software developer focused on optimising employee/individuals’ productivity, provided a sales update following the launch of its first cloud-based productivity apps, BOS Meet and BOS Automate.  Over 200 BOS Meet and BOS Automate seats subscribed for in Australia and the UK since the products were launched in December 2016 and January 2017 respectively.  An Australian multi-national company has subscribed for 100 seats of both products. Agreement entered with London based reseller.  This positive reception bodes well for the launch of our BOS 360 Work Patterns platform as a service, which is planned for May 2017.


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”.