Small Cap Feast

Small Cap Feast – 26th January 2017

Dish of the Day:

No AIM Joiners Today

Off the Menu:

No AIM Leavers Today

What’s Cooking in the IPO Kitchen?

Rainbow Rare Earths has published a prospectus. It has raised $8m to  fast-track fully permitted  high grade Gakara ‘rare earths’ project  to production  in Burundi. Intends to join the Standard List of the LSE.

Impact healthcare REIT— Intends to float on the main market. Seeks to raise £160m to acquire a portfolio of up to 58 care homes. Expected Admission 7 March.

Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.


Breakfast Buffet

Mobile Streams (MOS.L) 4.13p £3.78m

HY Dec 16 trading update from the independent mobile content store. Subscriber numbers in India exceeded 100,000 active subscribers and have since risen to over 130,000 during January 2017.   Successful fundraising of £2.2m (before expenses) to fund growth in India.   £2.8m of cash and cash equivalents at year end. Trading during the first half of the financial year was in line with expectations and unaudited revenues were approximately £3.6m (H1 2015: £8.0m). All revenue is from continuing operations. Argentina remains challenging. Focus is moving to India.


EU Supply (EUSP.L) 12.25p £8.3m

FYDec16 Trading update from e-procurement software provider. Results expected to be slightly ahead of market expectations. Revenue is expected to be up 21% to £3.4m (2015: £2.8m), of which, as at 31 December 2016, approximately 71% (2015: 73%) was expected to be of recurring or repeated nature. Loss before interest and tax is expected to be reduced by approximately 43% to £0.8m (2015: £1.4m), despite the negative impact of foreign exchange movements. Revenue growth has continued in Q4 2016 and the Group is expected to have been profitable before tax in the quarter.


Zoo Digital Group (ZOO.L) 8.75p £2.86m

FYMar17 trading update from the provider of subtitling and digital distribution services for the global entertainment industry. Momentum seen in the first half of the financial year has continued and, as such, ZOO expects the second half performance to show less seasonal variation than in previous years in terms of both revenue and EBITDA, with reported EBITDA for the full year expected to be at least $1.8m. This, in turn, means that the Company expects to deliver a significant improvement for the full year when compared to the financial year ended 31 March 2016.


Brooks Macdonald (BRK.L) 2012.5p £276.12m

Funds under management update and HY Dec 2016 trading update from the integrated investment management group. Over the last six months discretionary funds under management  have risen by 12.4% ending the period at £9.33 billion. Brexit and Trump have affected sentiment “over the last six months and whilst portfolios have performed well in these challenging conditions, we expect market volatility to remain.” FYJun17E PE of 18.6x and 2.1% yield.


EMIS Group (EMIS.L) 915.5p £575.5m

HYDec16 trading update from the UK specialist in connected healthcare software and services.  Trading in the second half of the year was consistent with the market conditions experienced in the first half and overall performance for the year was in line with the Board’s expectations. NHS funding pressures have been unhelpful but digital transformation an important part of the long term NHS plan. At the same time, the Group continues to benefit from its strong revenue visibility, market shares, solid order book and pipeline. FY16E rev of £160.34m an d £38.75m PBT.


Frontier Smart Technology (FST.L) 78.5p £31.73m

FYDec16 trading update from the pioneer in technologies for Digital Radio and Smart Audio devices. The Group expects to report an improved financial performance for FY 2016, achieving a positive Group EBITDA on a continuing basis, ahead of current market expectations. Revenue for the financial year is expected to be approximately £32m and underlying EBITDA is anticipated to be c. £0.7m. Solid cash position of £3.4m. This is due to improved Digital Radio revenue generation, a decrease in R&D expenditure, the sale of the loss-making Healthcare division and foreign exchange tailwinds. The Board expects revenue and underlying EBITDA to improve in 2017, driven by growth in Smart Audio.


Keras Resources (KRS.L) 0.45p £6.97m

The Australian gold mining company, has raised £600k at a placing price of 0.35p per Ordinary Share. Proceeds of the Placing will support ongoing exploration and development works at the Company’s 100% owned, flagship Klondyke Gold Project in the East Pilbara District of Western Australia, which has a current resource estimate of 5.6Mt at 2.08g/t Au for 374k oz with significant further upside potential indicated. Funds will also be used to retire 12-month loan notes secured in February 2016 and for general working capital purposes as the Company continues to finalise plans for a potential listing on the ASX. 


Ebiquity (EBQ.L) 102.5p £79.13m

FY Dec 16 pre-close from the  independent marketing analytics specialists. Ebiquity has continued to grow revenue with an increase in total unaudited revenues of 9%. Group margins are broadly in line with those achieved in 2015, with anticipated mid-single digit growth in operating profit and earnings. Ebiquity continued to benefit from the weakness of sterling, particularly in the second half of the year, with two-thirds of revenue denominated in non-sterling currency. FX revenue gains across the year amounted to £4.5m.  The start to 2017 has seen a noticeable pick up in new business activity. FY16E PE of 9.3x.


Frenkel Topping Group (FEN.L) 52.5p £40.4m

FYDec16 trading update from specialist independent financial advisor and asset manager focussed on asset protection for vulnerable clients. Profit from operations is expected to be in line with market expectations of £1.5m (2015: £1.5m) with cash generated from operations of £1.6m (2015: £0.9m).  AUM across the Company had grown to £745m as at 31 Dec 2016 (2015: £666m) and following the launch of Frenkel Topping Investment Management Limited (FTIM) in May 2016, the Company is pleased to report Assets under Administration (AUM) on a discretionary mandate with FTIM amounted to £253m as at 31 Dec 16 with further growth anticipated over the first half of 2017.


Ceres Power Holding (CWR.L) 8.1p £81.65m

H1 Dec 16 trading statement from the specialist in low cost, next generation steel fuel cell technology. Two new development agreements signed, bringing total to four including with Honda, Nissan and Cummins; well on track to meet target of five by the end of 2017.  Good progress on product development and geographical expansion. £1.5 million in revenue and other operating income for the first half, a threefold increase compared to first half last year. £4.8m order book  and three new evaluation agreements underway signed with potential future partners.


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0203 764 2344

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