Small Cap Feast

Small Cap Feast – 28th February

Dish of the Day:

Readmission to Standard List of Sealand Capital expected following reverse takeover of  SecureCom


Off the Menu:

Cancellation of admission of Jiasen International

What’s Cooking in the IPO Kitchen?

GBGI—Schedule One update from integrated provider of international benefits insurance. Raising £32m at 150p. Admission expected tomorrow.

Anglo African Oil & Gas— Admission expected early March. Acquiring stake in producing near offshore field in the Republic of the Congo.

Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play

Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime.  Issue closing 23 Feb.


Breakfast Buffet

Mineral & Financial (MAFL.L) 10.75p £3.05m

£300k placing at 10p. The funds raised from the Placing will be used in relation to potential investment opportunities in line with the Company’s investing policy and for general working capital purposes.  Mineral & Financial Investments Ltd.’s investment policy is focused on the metals and mining industry.


Redde (REDD.L) 178.5p £542.56m

HYDec16 results from the support services group specialising in accident management support, legal services, fleet management and policy fulfilment services. Turnover +37.5% to £227.1m. Adjusted EBIT up 15.5% to £19.8m. Net debt of £13.5m. Interim Divi up 11.1% to 5p. Outlook. “The second half of the year has started well with volumes maintaining the rate of growth seen in the first half and the Group remains well positioned to continue its profitable development.” FYJUn17E rev of £422.27m, PBT of £37.2m, yield of 6%.


UK Oil & Gas Investments (UKOG.L) 1.35p £35.1m

FY Sep 16 results from the exploration and appraisal company focussed on oil extraction from previously unrecognised naturally-fractured rocks within the Weald and the Purbeck-Wight Basins of southern England. The Horse Hill-1 oil discovery was the first ever to flow substantial oil from the Kimmeridge Limestones (“KL”). It achieved an aggregate stabilised natural flow rate of 1,365 barrels of oil per day (“bopd”) from two KL reservoirs (KL3 and KL4), a record rate for any UK onshore discovery well. Via two acquisitions, UKOG became the largest licence holder in the south-east of the UK, holding 942 gross km², a 113% increase from the previous reporting period. £2.9m operating loss. £2.4m year end cash.


Swallowfield (SWL.L) 350p £59m

FY Jan 2017 from the specialist in the development, formulation, and supply of personal care and beauty products, including its own portfolio of brands. Strong revenue growth of +44% (+12% excluding The Brand Architekts acquisition) to £39.7m. Adjusted op profit increased by 297% to £2.54m. Adjusted EPS increased by 176% year on year to 11.3 pence. Net Debt of £5.5m. Interim divi up 113% to 1.7p. ‘We expect the strong momentum in our branded business to continue, supported by a steady stream of new products, that signal not only continuing innovation flow, but also continued strong support for our brands across our retail customers.’ Some price input pressure but overall bullish on trading. FY17E rev of £67m and PBT of £4.4m. Div 5.2p.


Avanti Comms (AVN.L) 18.75p £30.4m

HY Dec 16 results from the provider of satellite data communications services in Europe, and the Middle East. Completed Strategic review with new financing of $242.0 million closed. Revenue for the 6 months of $32.3 million (2015: $31.0 million). EBITDA loss of $6.3 million (2015: loss of $3.8 million). “With new satellite launches pending we continue to target medium term revenue growth as previously guided. Growth in the current year has been limited by the disruption that existed in the first six months.  With the confidence delivered by the recent refinancing, revenue in the second half is expected to improve. “FYJun17E rev £84.5m. Pre-tax loss of £69m.


MileStone Group* (MSG.L) 0.31p £3.35m

FY Sep 16 results from the provider of digital media and technology solutions. Blockchain technology development capabilities now available.  Nexstar now able to publish and distribute independent films through Amazon Prime and other premium global streaming and purchasing services. Post year-end, Nexstar music publishing to 193 countries via 120 online music stores. Winning in the Game of Life(TM) rolled out across 100 primary schools classes across the UK. £1.7m loss. Net liabilities £1m. Further funding required.  During the year, the Directors agreed to write off a total of £704k of contingent liability and Directors’ trade payables. MSG remains wholly focused on ensuring that all parts of the business are revenue generating or are ready to drive sales during the coming months.


Actual Experience (ACT.L) 277.5p £104.14m

The analytics as a service company announced a proposed £18m placing at £2.5m including a vendor placing of up to £500k. The Placing proceeds payable to the Company will be used to progress the Group’s technology development, expand sales and support capabilities and further strengthen the Group’s balance sheet. The bookbuild is expected to close today. “Actual Experience has continued to make strong progress against our stated strategy of focusing on channel partners. We have recently received our first production order from a channel partner for one of its major customers and expect to receive further orders in the near future.” FUSep16A revs of £0.7m and £6m pre-tax loss.


CyanConnode Hldgs (CYAN.L) 0.19p £30.98m

The specialist in in narrowband radio mesh networks, announced that it has signed a Memorandum of Understanding with Tech Mahindra Limited,  a specialist in digital transformation, consulting and business engineering. CyanConnode and Tech Mahindra have agreed to collaborate to market, sell and deliver expertise in narrowband mesh technology for the smart grid, smart city and Internet of Things markets. As part of the collaboration, Tech Mahindra will integrate CyanConnode’s enterprise-level Head End Software with leading Meter Data Management Systems and Enterprise Business Applications to create an end-to-end utility specific solution.


Capital for Colleagues (NEX:CFCP) 57.5p £5.5m

AGM Statement. ‘We have made strong progress since Capital for Colleagues was established in  2013, investing in a diverse portfolio of companies focused on employee ownership and actively promoting the benefits of employee ownership to a wider audience.’ Insolvency of two investee companies disappointing. ‘Despite this set-back, we remain committed to the continued expansion of our investment portfolio, which generated revenues of £560,000 in the year ended 31 August 2016’


Sandal (NEX:SAND) 29.5p £4.9m

HY Nov 16 results from the designer, developer and manufacturer of electronic products. Sales up 13.2% to £1.9m. Increased net profit for the period of £110,895 (2015:£7,349).  Energenie MiHome successfully integrated with Nest’s Learning Thermostat and Amazon’s Echo; Post period end Energenie MiHome products in over 100 Sainsbury stores in the run up to   Christmas 2016 and range launched in Argos catalogue.  The Board remains confident that the business and in particular the Energenie MiHome division, will continue to achieve its growth potential in the second half of the financial year.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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