Small Cap Feast

Small Cap Feast – 24th 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

Fusionex International (FXI.L) 175p £82.78m

FYSep16 trading update from the multi-award winning international software solutions provider specialising in Big Data Analytics, Artificial Intelligence and the Internet of Things. Building on momentum achieved H1, Fusionex has continued to deliver on its strategy and make progress throughout the year. In particular, the Group successfully launched the next generation of its proprietary Big Data Analytics (“BDA”) platform, ‘GIANT 2016’, in June 2016. Revenue expected in-line and EBITDA significantly ahead.  FY16E rev £17.05m, Pre-tax loss £1.49m.

Rex Bionics (RXB.L) 22.5p £5.74m

The pioneer of the REX Robot technology that enhances the mobility of wheelchair users, has announced the start of a new clinical trial treating patients who have had a stroke or brain injury, with Robot-Assisted Physiotherapy with REX.  Trish Leonard, the Founder of  the Australian Institute of Neuro-rehabilitation, commented: “In REX’s self-supporting exoskeleton we see the potential to provide greater opportunities for weight bearing exercises to people with stroke and other acquired brain injuries. “

Crossrider (CROS.L) 35p £49.37m

The online distribution and digital product company, today announced the expansion of its app distribution business with the acquisition of PC maintenance software product, DriverAgent, from, Inc. for a total consideration of $1 million. In line with Crossrider’s new strategy to strengthen the Group’s B2C reach allowing it to operate as a digital distribution and product hub utilising its existing technology and intellectual property.  DriverAgent has already been a success on the platform. FYDec16E rev  £45.86m, EPS 2.32p.

Cerillion (CER.L) 130.5p £38.5m

The billing, charging and customer relationship management software solutions provider, has been positioned in the “Visionaries” quadrant of Gartner’s recently published report, “Magic Quadrant for Integrated Revenue and Customer Management (IRCM) for CSPs “ (Communications Service Providers). Gartner is the world’s leading information technology research and advisory company.  Also in-line trading update for FYSEP16. Revenues and EBITDA for the year are expected to show respective increases of 6% to £14.8m and 8% to £3.1m.

Sunrise Resources (SRES.L) 0.22p £2.41m

The diversified mineral exploration and development company, announced results of the second phase of drilling at its Bay State Silver Project in Nevada together with the results of a small programme of underground sampling, both targeting extensions of the Chihuahua Vein system south of Mining Canyon.  Shallow underground (near surface) samples include 0.91m grading 480 grammes/tonne silver. Hole 16SRRC004 – Located Chihuahua Vein system at c.300m below surface.  Another hole stopped short of this vein. A third did not intersect the Lincoln Vein.

Premier Asset Management Group (PAM.L) 134.5p £142.3m

Q4 30Sep trading update. Total AUM increased to £5 billion as at 30 September 2016. Total net inflows over the year of £778m. Net inflows over the quarter ended 30 September 2016 of £95m.    Over a three and five year period, 96% and 94% respectively of Premier’s retail fund AUM were above median, with 71% and 73% of Premier’s retail fund AUM achieving first quartile performance in their respective IA sector over the same time periods (excluding absolute return and volatility targeted funds).

Faron Pharma (FARN.L) 255p £67.09m

The clinical stage biopharmaceutical company, announced that its Japanese licensing partner Maruishi Pharmaceutical Co., Ltd.  has recruited the first patient in the Japanese Phase III pivotal clinical trial for the treatment of acute respiratory distress syndrome (“ARDS”) with FP-1201-lyo (also known as Traumakine®).  ARDS is a severe orphan disease with a reported mortality rate of approximately 30-45%, for which there is currently no approved pharmacological treatment.  Earlier trials have shown a significant decrease in mortality.

Frontera Resources Corp (FRR.L) 0.09p £6.76m

The oil and gas exploration and production company has released an update of its operations in the country of Georgia.  Following extensive workover operations throughout October, six new wells have now been prepared and will shortly receive stimulation completions in November.  The Company expects that the upcoming campaign will significantly contribute towards its current objective of achieving overall year-end pilot production rates of 2,200boe per day, which would result in monthly revenues of approximately $3m at current commodity prices.

Head Chef:

Emily Liu, CFA, CAIA
0203 764 2344

Sous Chef:

Sacha Morris
0203 764 2345

*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”.