Small Cap Feast

Small Cap Feast – 26th August 2016

Dish of the Day:

Admission of  APQ Global to AIM. (APQ.L) following Channel Islands IPO on  11 August raising £60.9m in a placing

Off the Menu:

No Leavers today.

What’s Cooking in the IPO Kitchen?

Misys— The press reports that the Banking Technology provider owned by Vista Equity Partners is seeking a £5.5bn float in London

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

Aura Energy—ASX listed uranium developer (ASX:AEE) expected to join AIM 6 September

 

Breakfast Buffet

Osirium technologies (OSI.L) 173.5p £18.03m

The UK based cyber-security software provider, announced a significant contract win with a leading global asset management company.  The asset manager has over £300 billion of assets under management and offices in c.30 countries. The contract is expected to deliver a material financial contribution in the current year and will run over a three year term.  There are no forecasts in the market. In H1Apr16 Osirium turned over £162k and made an operating loss of £0.5m and held cash of £4.9m.

 

Concurrent Technologies (CNC.L) 64.5p £46.8m

The specialist in the design and manufacture of high-end embedded computer products, for critical applications in the defence, aerospace, transportation, telecommunications, scientific and industrial markets,  announced H1Jun16 results. Turnover £9m vs £9.6m. PBT of £1.5m vs £1.6m. Interim divi + 14.3% to 0.8p. Net cash £8.2m. “The outlook for the remainder of this year remains positive.” FY16E PE of  12x and yield of 3.1%

 

LXB Retail Properties (LXB.L) 63p £106.06m

The Jersey resident closed-ended real estate investment company focused on edge of town and out of town retail assets, has exchanged contracts for the sale of its investment at B&Q, Greenwich to a private investor based in the UK.  The property is currently let to B&Q Plc until 23 June 2024 at a current rental of £2,244,000 per annum.  On completion, cash proceeds of £43.3m will be received. LXB is effecting an orderly disposal of its remaining assets. 31Mar16 NAV/Share 102.18p.

 

Electrical Geodesics (EGI.L) 79p £2.8m

H1Jun16 interims from the neurodiagnostic medical technology company.  Revenues up 27% to $6.6m. Increased revenues and cost controls led to a reduced net loss of $1.9m (H1 2015: $2.3m). EGI continues to target double-digit revenue growth for 2016  based on the performance in H1 2016, strong order book and the release for sale of new products and features, including GTEN. The Company expects the recent pattern of revenues being materially second half weighted to be a feature of the current financial year.

 

Rex Bionics (RXB.L) 32.5p £8.3m

FYMar16 results from the pioneer of the REX Robot technology that enhances the mobility of wheelchair users. Revenues of £451k and a £4.9m net loss. £2.3m raised post year end. Strategic re-positioning, emphasising the unique benefits of REX for patients with the most severe spinal cord injury and rehabilitation-resistant stroke. Agreement signed with Avicenna Partners, based in Dubai, to provide Robot Assisted Physiotherapy with REX in the United Arab Emirates.

 

San Leon Energy (SLE.L) 47.5p £29.36m

The company has  conditionally raised approximately £170.3 million at a placing price of 45p  with institutional and other investors. The net proceeds are being used to complete the OML 18 Production Agreement, which will result in the Company securing an initial 9.72 per cent. indirect economic interest in OML 18, the world-class Nigerian onshore oil and gas asset, and for general corporate purposes. As of June 2016 OML 18 was producing at approximately 50,000 bopd of oil and 50 MMscfpd gas.

 

Petro Matad (MATD.L) 3.05p £8.77m

The Mongolian oil explorer has released H1Jun16 results. $0.1m profit vs $1.74m loss reflecting cash calls received in 2016 from BG Group (Shell) to fund operations under the farm-out agreement prior to receipt of BG Group’s exit notice. Post period end  $10m has been received from a Shell affiliate. A further $5m  is payable upon Mongolian Government approval of the reassignment of BGMH’s interest in Blocks IV and V to Petro Matad funding the next 12 months exploration program.

 

P2P Global Investments(P2P.L) 840p £720m

H1Jun16 results from the company dedicated to investing in credit assets originated via marketplace lending platforms globally. NAV/share up marginally to 1,011.59p but the share price has swung from a 5.83% premium to a discount of 15.97% at the period end. The company has been buying back shares. Despite recent difficult markets and headwinds created by the Brexit vote, P2P believes  its asset classes offer attractive risk-adjusted returns relative to many fixed income instruments in the market.

 

Sound Energy (SOU.L) 66.25p £352.36m

The European and African focused upstream company, has confirmed the commencement of drilling of the second well at Tendrara, onshore Morocco.   The well objectives include proving sufficient gas volumes and well deliverability to enable finalisation of the field development plan and a concession application and demonstrating the benefits of sub-horizontal drilling, which is expected to be implemented as the production well concept for Tendrara.

 

ITM Power (ITM.L) 23p £49.9m

The energy storage and clean fuel company, is announced that it has signed a fuel contract to supply hydrogen at £10/kg with Arcola Energy.  The fuel will be supplied from ITM Power’s growing hydrogen refuelling infrastructure, part funded by OLEV, FCH JU and InnovateUK. The fuel agreement provides a pass through framework for the commercial fleet operators and gives them a secure fuel price to implement their business models.

 

Head Chef:

Derren Nathan
0203 764 2344
derren.nathan@hybridan.com

*A corporate client of Hybridan LLP

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