Small Cap Feast

Small Cap Feast – 26th October 2016

Dish of the Day:

ConvaTec (CTEC.L)— The offer has been priced at 225p. Mkt cap £4.39bn. Admission today on main market.

Van Elle (VANL.L) has arrived on AIM raising £40m at 100p

Off the Menu:

No AIM Leavers Today

What’s Cooking in the IPO Kitchen?

Golden Rock Global— Prospectus published (Standard List). Issuing 3.5m shares at 10p. Seeking fintech acquisitions. Admission due 31 October

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

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

Milestone Group* (MSG.L) 1.27 p £11.17m

Milestone has announced the extension of an agreement between its Nexstar joint venture partner Black Cactus and Benefits on Madison, Inc, a leading Fintech Solutions Group based in Toronto. The extension of an existing agreement between Black Cactus and Madison now includes Nexstar, and allows Nexstar to issue prepaid and debit cards, promote, market and solicit orders for Benefit on Madison’s extensive range of stored-value prepaid debit card services to resellers and/or to customers and cardholders directly. Expects 1st contract in 2016 for Q1 17 launch.

Earthport (EPO.L) 16p £76.3m

The payment network for cross-border payments has announced FYJun16 results. Revenues in line up 18% to £22.8m. Cash and equivalents of £14.4m. Operating loss of £8m including a £5m exceptional hit from the Baydonhill fraud incident. FY17 started well. In Q1  Earthport processed 2.3 million in Transactions, up 91%. £2.9 billion in Payment Volume up 110%. Increasingly challenging environment for new market entrants. FY2017E revenues of £30.6m and pre-tax loss of  £3.17m.

Keyword Studios (KWS.L) 440p £239.09m

The international technical services provider to the global video games industry, today announced that it has acquired Player Research Ltd  for a total consideration of up to £1.3 million. Player Research provides consulting and user testing from its state of the art play testing laboratory to mobile, console and Virtual Reality game developers. Expected to be immediately earnings enhancing. FYDEC16E revenues of £74.57m, EPS 14.55p.

Defenx (DFX.L) 95p £6.38m

General Meeting Statement from the security software company. The meeting is to approve the £1.5m fundraise at 8op. The intention is to use the net proceeds of the fundraise to accelerate software development, both to enhance existing products and to develop and test new products, and for general working capital purposes. Trading in the second half of the year is progressing well and in line with market expectations. FYDec16E revenues of £7/08m and EPS of 17.11p. 5.6x PE.

Eurasia Mining (EUA.L) 0.72p £10.57m

Under a loan arrangement with Sanderson Capital Partners, Eurasia has drawn down a further £100k and accordingly issued 1.1m shares in satisfaction of the draw down fee. Furthermore t it has issued a further 391,608 Ordinary Shares at a price of 0.55p to Beaufort Securities Limited, in lieu of fees.

Egdon Resources (EDR.L) 17.62p £34.04m

Egdon has acquired, at zero cost additional interests in two 14th Round licences in the Company’s East Midlands core area. Egdon will materially increase its interests in two of its recently announced Egdon operated 14th Round awards, PEDL334 and PEDL306 via an assignment of interests from Celtique Energie Petroleum. These transactions will add a total of 14,428 net acres (58 km2) to Egdon’s licence holdings.

Benchmark Holdings (BMK.L) 93p £338.9m

FYSep16 trading update from aquaculture biotechnology and food chain sustainability business. Performance expected in line with expectations. FY2016E revenues of £106.7m and £17.48 PBT. Solid performance in a challenging year. The ongoing effect of El Niño in South East Asia and Latin America, and disease challenge coupled with low market prices in the shrimp sector, is resulting in delayed sector investment and lower growth rates in the short term. Focus on growing sales and market share

Dalata Hotel Group (DAL.L) 371.5p £679.72m

Dalata has  acquired Rush (Central) Limited which holds the freehold interest of the Clayton Hotel Cardiff for £24m (c. €27m). The hotel  is a 4 star hotel, excellently located on St. Mary Street, in Cardiff city centre, a short walk from Cardiff Central train station and the Principality (formerly Millennium) Stadium. The hotel contains 216 air-conditioned bedrooms, a bar and restaurant, a fitness suite and extensive meeting room facilities. The Company currently holds a leasehold on the property until 2046, at an annual rent of £1.511m per annum subject to upwards only rent reviews.

Mariana Resources (MARL.L) 69.5p £84.55m

Further exceptional Gold-Copper intercepts reported from both Infill and Extension Drilling at the Hot Maden Project, North East Turkey.  Includes hole HTD-71:     69.6 m @ 62.7 g/t Au + 2.68% Cu from 210m downhole. Further highlights the continuity of the ultra high grade gold-copper zone. Drilling at the current southern limit of the Main Zone resource area has also intercepted what appears to be either a deep extension or an offset to the Main Zone.

Forbidden Technology (FBT.L) 12.38p £18.62m

Forbidden has announced further developments on its Forscene video cloud platform. Forbidden is adding two new apps to its innovative camera to screen video management cloud solution. Together, the apps improve the usability and efficiency of the Forscene platform. Forbidden already has one of the most comprehensive SaaS platforms for rapidly generating clipping and highlights packages for sports and news. It is also used extensively with reality TV and factual programmes for highly efficient remote logging and non-linear editing.

Head Chef:

Emily Liu, CFA, CAIA
0203 764 2344
emily.liu@hybridan.com

Sous Chef:

Sacha Morris
0203 764 2345
sacha.morris@hybridan.com

*A corporate client of Hybridan LLP

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