Small Cap Feast

Small Cap Feast – 27th October 2016

Dish of the Day:

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What’s Cooking in the IPO Kitchen?

Misys—’Despite encouraging institutional support Misys Group Limited has decided not to proceed with its potential initial public offering at the current time due to market conditions.‘

BB Healthcare Trust targeting a £200m issue on the main market. BB Healthcare will be a high conviction, long-only investment trust invested in listed or quoted global healthcare equities.

Filta— AIM 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

Breakfast Buffet

Venn Life Sciences* (VENN.L) 21.5p £12.95m

The growing Contract Research Organisation providing drug development, clinical trial management and resourcing solutions to pharmaceutical, biotechnology and medical device clients, announced that the sale of Innovenn UK Limited for up to £4.74m was approved by shareholders at yesterday’s General Meeting.

OneView Group (ONEV.L) 4.13p £14.5m

The omni-channel mobile point of sale provider has signed an agreement to provide cloud-based point of sale, inventory, replenishment and promotions to Molton Brown, one of the world’s most widely recognised and respected luxury brands, whose ultimate parent company is Kao Corporation, a chemical and cosmetics company listed on the Tokyo Stock Exchange and headquartered in Japan. The deal is OneView’s second cloud-based hosting service contract to be signed this year.

Futura Medical (FUM.L) 65.5p £64.91m

The healthcare company focused on advanced transdermal technology intends to conduct a placing at a price of 57 pence per share, to raise up to £12 million. A 13% discount to yesterday’s close. The Placing Shares are being offered by way of an accelerated bookbuild.  The Board believes that the Group requires and would benefit from additional finance to enable it to accelerate its growth strategy, in particular for the MED2002 (erectile dysfunction) programme and also for the pain relief products.

Symphony Environmental Technologies (SYM.L) 4.13p £6.18m

Symphony announced the successful presentation and launch of new antimicrobial, insecticidal, anti-rodent, odour absorbers and flame retardant products and technologies at the K-Show, in Dusseldorf, Germany.  Symphony also introduced a new compostable plastic product, which complies with European and American standards. Symphony left ‘Dusseldorf with more than 20 exciting new commercial trials and development projects to progress’. FY16E revenues of £5.4m and £0.1mPBT.

Ten Alps (TAL.L) 0.8p £3.36m

The producer of high-quality television and radio together with integrated publishing and communications content (proposed name change Zinc Media Group) intends to raise £807.8k at 0.75p by way of an accelerated bookbuild. A 6.25% discount. The Company has also secured a £432.9k long term loan and is seeking to defer existing debt payments to December 2020. The proposals are subject to shareholder approval.

CareTech Holdings (CTH.L) 276.5p £177.4m

The provider of specialist social care services in the UK has announced a FY30Sep trading update. Trading for the year is in line with market expectations.  During the year, 74 additional beds in reconfigured services and new services have been brought into capacity. These beds have a higher contribution than the beds pre-reconfiguration and are part of the ongoing strategy to enhance fees and margins.  Including acquisitions there was a net capacity increase of 203 places to 2.319.  FY16E rev £147m, EPS 33.6p, Div 8.97p.

Magnolia Petrolium (MAGP.L) 0.51p £1.68m

The US onshore focused oil and gas exploration and production company,  has raised £225k at 0.1p. 225m warrants exercisable at 0.15p have also been granted. The proceeds of the Placing will be used to fund current drilling commitments on its acreage in proven US onshore hydrocarbon formations, such as the Woodford and Mississippi Lime in Oklahoma.

Versarien (VRS.L) 11.63p £13.54m

The advanced materials group has announced the participation of the Company’s subsidiary, 2-DTech Ltd, in a new project funded by the EPSRC (Engineering and Physical Sciences Research Council). The project “2D Materials for Next Generation Healthcare Technologies” aims to further explore how graphene can improve major health challenges, such as cancer, diabetes and dementia, utilising £5.2m of funding from the EPSRC over the next 5 years.

Stobart Group (STOB.L) 154.25p £531m

Strong interims from the main market listed infrastructure and support services group. Revenue from continuing operations up 13% to £65.3m. Underlying EBITDA increased by 102% to £20.2m. Underlying PBT up 252% to £16.2m. Post period end  heads of terms signed with CityJet to operate flights to up to 18 new destinations starting April 2017, bringing up to 600,000 new passengers through our award winning London Southend Airport. FYFeb17E PE 26.6x yield 7.1% yield. Strong asset backing.

EG Solutions (EGS.L) 44p £9.98m

The back-office workforce optimisation company, has signed its first direct contract in the Asia Pacific region with a leading financial services group, headquartered in Singapore.  This contract is worth approximately £500,000 with circa 50% of the contract value expected to be recognised in the current financial year. There is imminent potential for this contract to be expanded further. FYJAN17E revenues £8.19m, PBT £0.38m.

Head Chef:

Emily Liu, CFA, CAIA
0203 764 2344

Sous Chef:

Sacha Morris
0203 764 2345

*A corporate client of Hybridan LLP


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