Small Cap Feast
Small Cap Feast – 27th January 2017
Dish of the Day:
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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.
Formation Group (NEX:FRM) 1.85p £4.1m
FYAug16 results from the property development and project management Company. Group revenue growth of 24% to GBP29.410m (2015: GBP23.764m) on the back of an increasing workload driven by the current strong London property market. Profits before taxation of GBP2.157m from continuing operations (2015 profit: GBP2.203m). Formation Group continues to be positive that its core property construction activity remains strong and that it will be able to continue to generate substantial revenues. The Group continues to have a healthy on-going project stream that will include the final sales of the Iverson Road apartments, expected to occur during the year ending 31 August 2017.
Omega Diagnostics (ODX.L) 17.5p £19.03m
The medical diagnostics Company focused on allergy, food intolerance and infectious disease, announced an update on its discussions with Immunodiagnostic Systems Holdings. The preferred course of action is to pursue an enlarged distribution relationship with the Company. Currently, IDS has contractual rights to be appointed as the Company’s exclusive distributor in territories comprising the UK, France, Germany, Austria, Switzerland, Nordic countries and the United States of America. The ongoing discussions will therefore focus on how Omega can attain a more global reach for its Allersys® range of allergy tests in a structure that benefits both organisations. Currently, the Company has 41 CE-Marked allergy tests which can be run on the IDS iSYS automated instrument.
Ubisense Group (UBI.L) 42p £23.47m
FY Dec16 trading statement from the specialist in high performance Enterprise Location Intelligence systems, through its RTLS and mobility focused geospatial (myWorld) offering. The Company showed continued good progress in terms of revenue growth, margins, cost management and order book, all of which are significantly better than those achieved in 2015. The increased focus on the RTLS software platform has paid off with the signing of a global software licence deal with a major automotive manufacturer. “We also signed some significant new and extended RTLS product orders. In the geospatial division, we are seeing increased demand for myWorld services projects and new licence sales.” Ended year with net cash position which improved in January through debtor collections, and is in compliance with new HSBC facility. banking covenants.
Mortgage Advice Bureau(MAB1.L) 372.5p £187.97m
One of the UK’s leading networks for mortgage intermediaries, has issued a pre-close trading update for the year ended 31 December 2016. revenues. In line with market consensus revenue increased by 23% to £92m driven by a 23% increase in the average number of Advisers to 888 with 950 at the period end. Although average revenue per adviser was flat in 2016 due to the impact of the lull in activity in the housing and mortgage market surrounding the EU referendum, MAB expects to see growth in the current year. Underlying profit before tax for the year ended 31 December 2016 was ahead of market consensus despite the impact of this lull. MAB is focussed on growing market share. FY17E rev of £109.9mand PBT of £14.23m
CEPS (CEPS.L) 37p £3.5m
CEPS has raised £1.27m in a placing at 35p with institutional and private investors and certain related parties. The net proceeds of the Placing will be used to repay the third party loan of £690,000 that was entered into at the time of the Company’s acquisition of Hickton Holdings Limited as set out in the Company’s announcement dated 1 February 2016, and for general working capital purposes. Hickton supplies “clerk of works” services to the construction industry.
Dorcaster (DAR.L) 162.5p £16.25m
Dorcaster announced that it has extended the period of exclusivity granted by the exclusivity agreement entered into with the shareholders of Escape Hunt to 31 March 2017 in order to allow the Company to complete the due diligence and associated funding. As a result the Company has requested that the suspension of trading in its shares remain until such time that: it has published an admission document for the group as it would be enlarged following the proposed acquisition; negotiations in relation to the proposed acquisition have been terminated; or the period of exclusivity granted to the Company has expired.
Coral Products (CRU.L) 12p £9.91m
Following a poor trading performance at its Coral Products Mouldings Limited subsidiary during November and December 2016, group profitability for the year ending 30 April 2017 is likely to be materially below management’s and market expectations. Immediate steps have been taken to improve performance at Mouldings and losses are expected to be reduced from January onwards although a loss is forecast for the financial year. The Board also announces that for personal reasons, Mr Roberto Zandona, CEO, has resigned. Furthermore, Stephen Fletcher, Finance Director has retired also for personal reasons. Joe Grimmond moves to Exec Chair. Overall Coral remains profitable, cash generative and with a strong asset base.
Porta Communications(PTCM.L) 4p £12.38m
The international communications and marketing group has agreed the settlement of a debt of £530,247 due to Retro Grand Limited (managed and administered by a corporate trustee, Morton PTC Limited) by way of the allotment and issue of 12,476,389 shares. The Debt Conversion constitutes a related party transaction pursuant to Rule 13 of the AIM Rules as Morton PTC Limited is the owner of Hawk Investment Holdings Limited (a substantial shareholder of the Company) as the trustee of the Morton Family Trust, and Retro Grand as the trustee of the Edward Trust.
Condor Gold (CNR.L) 56p £29.63m
Condor Gold announced, further to the announcement of 15 December 2016, the scout drilling results for four drill holes totalling 719.6 m on the Cacao Prospect at the La India Project. This drilling is designed to test targets with the potential to contribute to La India’s high grade mineral resource of 18 Mt at 4.0 g/t for 2.31 Moz gold. Drill core demonstrates a significant dilational vein at Cacao, with the prospect of a much larger gold resource. Cacao forms a major “Link” between two major basement feeder zones (La India and Andrea Corridors). Drill intercepts: 7.85 m at 3.75 g/t gold, 7.85 m at 2.95 g/t gold and 17.1 m at 1.74 g/t gold, demonstrate broad zones of gold mineralisation.
RTC Group (RTC.L) 43.5p £6.33m
FY Dec 16 trading update. “We are pleased that our trading is in line with market expectations. All of our group businesses had a strong end to the year and we remain confident that this positive momentum will continue in 2017.” RTC has three principal trading subsidiaries engaged in the recruitment of human capital resources and the provision of managed services. FYDec16E rev £68m and PBT of £1.1m.
Emily Liu, CFA, CAIA
0203 764 2344
0203 764 2345
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