Small Cap Feast
Small Cap Feast – 24th March 2017
Dish of the Day:
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What’s Cooking in the IPO Kitchen?
Eddie Stobart Logistics—Intention to float on AIM. Intends to float in April. 49% held by Stobart Group (STOB.L)
K3 Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC.
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.
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.
Eurasia Mining (EUA.L) 0.52p £8.02m
Company update. Production work has commenced at the Malaya Sosnovka Area within the West Kytlim Alluvial Platinum and Gold Mine. An increase in the reserves for the Malaya Sosnovka area has also been submitted for approval.
First review and additional information has been completed by the Reserves Committee assessing the Feasibility Study and Reserves Report for Monchetundra in Kola.
Discussions on project finance underway for the Semenovsky Tailings and exclusivity period extended.
CentralNic Group (CNIC.L) 46.75p £44.83m
Response to press speculation from the internet platform business which derives revenues from the global sale of domain names and associated services. The Company has a stated strategy to execute acquisitions where these meet the Group’s strategic criteria. In line with this strategy, CentralNic can confirm that it is in discussions with SK-NIC, a.s., the registry service provider for the .sk country code top level domain for Slovakia, however these discussions have not been concluded and the potential transaction remains in the course of negotiation. The discussions may or may not lead to an acquisition of the SK-NIC, a.s. business or a commercial relationship between the companies. FYDec16E rev £22.15m and EPS of 3.55p.
Digital Barriers (DGB.L) 31p £51.19m
FYMar17 trading update from the specialist provider of visually intelligent solutions to the global surveillance, security and safety markets. Momentum in the business is strong and although sales cycles have shortened the Group is currently in the latter stages of securing a number of material solutions sales and framework contracts, all of which it had expected would be secured prior to 31 March. Whilst the Group currently expects to secure all of these awards, it has now become clear that some or all of them may now be secured in the next financial year. If none of the awards are signed before the end of March, there is expected to be a shortfall of approximately £10m on revenue for the year ending 31 March 2017 compared to current market forecasts. FYMar17E rev of £38.8m and pre-tax loss of £4m.
Creo Medical Group (CREO.L) 81.5p £653.78m
The medical device company focused on the emerging field of surgical endoscopy, announced that the Company’s Speedboat RS2 has received CE Mark approval for microwave energy to add to the device’s previously awarded CE Mark for radiofrequency. In clinical studies, the Speedboat RS2 successfully demonstrated safety and efficacy of the application of microwave energy to coagulate bleeds in the colon in 30 patients and represents the first device to use microwave energy in combination with radiofrequency. The study publication has been accepted for Digestive Disease Week® the world’s largest medical meeting of physicians, researchers and industry in the fields of gastroenterology, hepatology, endoscopy and gastrointestinal surgery.
IG Design Group (IGR.L) 264.5p £165.69m
Trading update (FYMar17) from the designers, innovators and manufacturers of celebrations, gifting, stationery and creative play products. Group revenues are now expected to achieve record levels – exceeding £300m; Profitability expected to be ahead of current market expectations; Cash generation is well ahead of previously expected levels and such that the Board’s target of average annual leverage at less than 2.5x EBITDA will be achieved for the year ended 31 March 2017 – two years ahead of plan. FYMar17E rev of £295.6m and PBT of £14.5m. PE of 1.6x and yield of 1.5%.
Coral Products (CRU.L) 13.25p £10.95m
Completion of purchase of assets of ICM Ltd from its Administrators for a total consideration of circa £600k. Includes various injection moulding machines some with robot handling, chillers, mixers and cranage. The assets will improve utilisation at the Haydock facility. “Following a rigorous selection process our Haydock facility has been approved by two major multinational tier one automotive system suppliers to supply a number of components. Whilst volumes are not yet formalised we confidently expect this to lead to substantial new business throughout our next financial year. In addition, our recently announced bakery tray business is expected to increase substantially in the same period.” FYApr17E rev £24.5m, EPS 2.3p.
Frontier Smart Technologies (FST.L) 86.5p £34.96m
FYDec16 results from the pioneer in technologies for Digital Radio and Smart Audio devices. EBITDA ahead of market expectations, turning positive at £0.7 million (FY 2015: loss1 £0.8 million). Steady revenues of £32.1 million (FY 2015: £31.7 million). Cash of £3.4m. The outlook for 2017 is healthy and the Board expects revenues and EBITDA to improve this year. Digital Radio revenues are benefitting from the continued international uptake of DAB radio. In January 2017, Norway became the first country to start the switch-off of its FM broadcasts, which has contributed to increased demand in the opening months of this year. Smart Audio revenues should return to growth in 2017 following the release of the Group’s new solution at the end of 2016.
Robinson (RBN.L) 133.5p £21.89m
FYDec16 results from the custom manufacturer of plastic and paperboard packaging. Revenue down 6% to £27.5m – £0.8m increase due to foreign exchange movements -Volumes down 8%. Operating profit pre- exceptional items £1.4m (2015: £2.4m). Final Madrox earn out paid (£4.3m). Net debt £4.9m. Held final divi at 3p. “The general economic conditions suggest another challenging year ahead with continued pressure on consumer product brands and the UK retail sector. Continued investment in both personnel and equipment are leading to significant additional expenditure in 2017, justified by new business, some of which is already coming on stream. We remain on track to deliver revenue growth in 2017.”
easyHotel (EZH.L) 101.5p £86.43m
Trading update for 5 months to 28 Feb 2017. Slightly above Board’s expectations. Owned hotels once again materially outperformed their competitive set during the period, whilst the overall UK hotel market improved year on year. This performance was mainly driven by strong owned hotel like-for-like revenue growth of 19% for the five months to 28 February 2017 compared with the same period last year, as the Group continues to benefit from the revenue strategy announced in December 2015. easyHotel’s total committed development projects currently have 1,748 rooms under development, 716 of which are owned and 1,032 are being developed by franchise partners.
Concurrent Technologies (CNC.L) 58p £42.18m
FYDec16 results from the specialist in the design and manufacture of high-end embedded computer boards for critical applications. Turnover of £16.4m (2015: £17.1m). Gross profit increased by 3.0% to £8.9m (2015: £8.6m). EBITDA increased by 3.2% to £4.3m (2015: £4.2m). £7.8m cash. Total divi for year of 2.1p from 1.9p. “Sales and new interest in our products and services arising this year have been encouraging and our current healthy order book gives us confidence in our performance for 2017.” There are no market forecasts.
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