Small Cap Feast

Small Cap Feast – 28th March 2017

Dish of the Day:

No AIM Joiners Today

Off the Menu:

Yesterday saw the departure of  RapidCloud International and North River Resources.

CloudTag International due for cancellation today following earlier NOMAD resignation.

What’s Cooking in the IPO Kitchen?

Path Investments—Publication of prospectus from the Energy Investment Company. Raising £1.4m. Admission due on or around 30 March.

Franchise Brands—Schedule 1 detailing £28m reverse takeover of Metro Rod. Admission expected 11 April.

Alpha FX Group— Schedule 1 from the foreign exchange provider focused on managing exchange rate risk for UK corporates that trade internationally.  Fundraise TBC. Admission expected 7 April.

K3 Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC.

Integumen— Schedule 1 from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.16m at 5p. Expected market cap £8.16m. Admission expected 5 April.

Tufton Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.


Breakfast Buffet

Electrical Geodesics (EGI.L) 77.5p £2.76m

The neurodiagnostic medical technology company,  provided preliminary results of case studies from the first three patients treated in its safety and feasibility trial for suppressing focal epilepsy with Geodesic Transcranial Electrical Neuromodulation (GTEN).  Each of the three patients has demonstrated a statistically significant suppression of epileptic discharges immediately following treatment, where statistical significance is measured by the change in the epileptic discharge rate (before versus after treatment) across the five treatment days. Further funding required to advance clinical studies. Subject to this recruitment of 20 patients for a feasibility study targeted by year end aiming for a pivotal trial in 2018. There are no market forecasts.


WANdisco (WAND.L) 371p £130.3m

The specialist in Active Data Replication™, has launched WANdisco Fusion 2.10, the latest version of the Company’s Big Data replication product. WANdisco Fusion 2.10 extends existing capabilities to enable seamless data replication at petabyte scale between Network File Systems (‘NFS’) on NetApp devices and any mix of on-premises and cloud environments. This new capability will significantly increase Fusion’s total addressable market, by in excess of $1billion per annum. With the volume of data stored on-premises expected to increase five-fold by 2020 and 92% of workloads expected to be processed by cloud data centres, WANdisco’s Fusion 2.10 is ideally placed to capitalise on this shift.


Proteome Sciences (PRM.L) 4p £11.77m

FYDec16 results. 46% revenue growth to £2.74m, underpinned by 57% increase in sales of TMT® reagents to £1.39m; costs and margins as expected. After the tax credit of £0.66m (2015: £0.61m), the loss after taxation for the period was £2.28m (2015: £2.72m).  The net cash outflow from operating activities was £1.99m (2015: £2.36m). Strengthened Board. £3.3m raised in October. Looking to profit from the shift towards personalised medicine but still in a transition phase and looking to broaden customer base for its novel protein biomarkers for diagnostic and treatment applications.


ClearStar (CLST.L) 22.5p £8.17m

FYDec16 results from the technology and service provider to the background check industry. Revenue increased by 3% to $16.0 million. EBITDA improved by $290,000 to a $666,000 loss. Net cash of $2.4m. The Company entered 2017 well positioned with a stronger client base and a more comprehensive service offering compared with the previous year. Announced separately that it has entered into a partnership with IntelliCentrics, the healthcare industry leader with over 10,000 distinct installations of vendor credentialing across the USA, Canada, and the United Kingdom.  FYDec16E sterling forecasts of £14.1m and £1.27m pre-tax loss.


Dana Group International Investments (NEX:DANA) 0.75p £1.9m

HYDec16 results from the Shari’ah compliant real estate development and investment company. Comprehensive income USD 0.02 million (2015: comprehensive loss of USD 100.09 million) with comparative period suffering from devaluations from associate company MMCI.  As at 31st December 2016, the Company’s net assets stood at USD 77.69 million.


Tasty (TAST.L) 114p £68.17m

FY1Jan17 results from the branded restaurant operator in the UK casual dining market. Revenue up 28% to £45.8m. Headline operating profit before pre-opening costs and non-trading items was up 21% to £4.8m. Thirteen Wildwood and Wildwood Kitchen restaurants opened during the period. Since the year end the Company has opened a further two Wildwood sites and there are a further two Wildwood sites that are due to open imminently. Trading since year has proved challenging and the Directors are now expecting headline operating profit for 2017 to be below that achieved in 2016. Revised down the planned number of openings for the current year from 15 to 7.


Amryt Pharma (AMYT.L) 19.25p £40.11m

The pharmaceutical company focused on best-in-class treatments for rare and orphan diseases, has commenced  “EASE”, its Phase 3 clinical trial of AP101, Amryt’s lead drug candidate, which offers a potential treatment for Epidermolysis Bullosa (“EB”). Expects to enrol 164 patients globally over 30 sites. The proportion of patients with completely healed target wounds within 45 days will be evaluated as the primary efficacy endpoint. EB is a chronic and debilitating condition that causes the skin to blister and tear at the slightest touch and for which there is currently no known cure. There are approximately 500,000 people living with EB worldwide and the global market for a treatment in EB is estimated to be in excess of EUR 1.3 billion.


LiDCO (LID.L) 6.25p £15.26m

FYJan17 results from the hemodynamic monitoring company. LiDCO product revenue up 14% to £6.76m. Revenue up 8% to £8.21m.  Adjusted PBT of £0.06m (2016: loss £0.34m). Debt free with cash at year-end of £4.90m (2016: £1.59m). Raised £3m in December. ‘We now enter a period of investment in our sales and marketing activities, for which costs are expected to be approximately £1.9m more in 2017/18 than in 2016/17. This investment will enable us to better execute our strategic plan, ensuring that we have the resources to expand our product sales into the many countries where adoption of advanced hemodynamic monitoring is now occurring.’ FYJan18E £9.5m rev and £0.7m pre-tax loss.


Instem (INS.L) 204p £32.17m

Revenues up 12% to £18.3m. Recurring revenues up 21% to £12.1m. Adjusted PBT of £0.7m (2015: £1.7m). £5m placing in Feb 15  followed by two acquisitions in the period. Disappointing performance from Instem Clinical being addressed through decisive management actions following strategic reappraisal. Strong trading across all other areas.  A more conservative revenue outlook for Instem Clinical in 2017  expected to be more than offset by the growing momentum of  KnowledgeScan big data analytics and insights service,  and the FY contributions from the Samarind and Notocord acquisitions. Near term profit will be constrained by investment but long term growth platform being put in place. 2017 revenue growth expected  to be  in-line. FY17E rev of £23.9m and  £3.26m PBT.


Ebiquity (EBQ.L) 121p £93.4m

FYDec16 results from the independent marketing analytics specialist. Revenue up 9.1% to £83.6m.  Underlying operating profit up 4.4% to £13.0m. Divi 0.65p from 0.4p. “Our delivery on the milestones set out in the Growth Acceleration Plan, coupled with events in the media marketplace – such as the debate around the performance of digital advertising – create significant medium-term growth opportunities. The implementation of our plans, the opportunities arising from the changing nature of the industry, make us excited for the future.” GYDec17E rev of £91.68m and PBT of £12.27m.


Head Chef:

Derren Nathan
0203 764 2344

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