Small Cap Feast

Small Cap Feast – 28th October 2016

Dish of the Day:

No AIM Joiners Today

Off the Menu:

No AIM Leavers Today

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

Physiomics* (PYC.L) 0.02p £1.37m

FyJun16E results from the provider of bio-simulation solutions to the oncology drug development industry. Turnover up 26% to £297k. Loss after adjusted net operating expenses down 6% to £371k. This year, Physiomics continued to build out its client base and extend its modelling and simulation services relationships with key existing clients.  In addition, Physiomics appointed a new Chief Executive Officer with significant deal making experience.


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

The provider of digital media and technology solutions announced that its subsidiary Nexstar has expanded its unique Alchemy digital media platform to now include a 24/7 online over-the-top TV streaming service, Alchemy TV which goes live today. Milestone will receive a share of advertising revenues generated both through the consumption of media across these channels and from the creation of third party accounts and premium services sold.


Inspired Energy (INSE.L) 13.38p £64.85m

The  energy procurement consultant to UK corporates announced that it is conducting a placing of up to 37.7m existing shares at 13.25p from parties including Directors of the company. ‘The principal purpose of the sale is in response to strong institutional demand, which will broaden the Group’s shareholder register and increase liquidity in the Ordinary Shares. The Placing will take place via an accelerated bookbuild.’


Entu (ENTU.L) 20.25p £20.25m

The home improvement group providing energy efficiency products and services to homeowners and businesses in the UK, has agreed the disposal of Astley Facades Limited to Duality Group Ltd for £1. The disposal is in line with Entu’s strategic focus on improving the performance of, and driving growth in, its core Home Improvements business. £1.1m EBITDA to be reported as discontinued operations for current year. The Group now expects EBITDA from continuing operations pre exceptional items to be between £2.5m and £2.9m.


BMR Group (BMR.L) 7.75p £13.47m

BMR has raised £620k gross at 6.7p per share. The issue carries a 1 for 1 warrant at 7p. The net proceeds of the placing are expected to be invested in the Star Zinc project in Zambia following the exercise of the purchase option and will also be used for general working capital purposes. The placing was conducted following the interest in investing of a long-supporting shareholder in the Company, Lewis Bagga, whose aggregate beneficial shareholding now amounts to 3.6% of the enlarged issued share capital.


Independent Oil & Gas (IOG.L) 15.75p £16.17m

IOG has completed the acquisition of 100% of the shares of Oyster Petroleum Limited. Oyster holds the Southern North Sea licences containing the Vulcan East, Vulcan North West and Vulcan South fields, collectively the Vulcan Satellites. The Acquisition increases IOG’s 2C recoverable resources by 320.7 BCF or 53.45 million barrels of oil equivalent.  The Vulcan Satellites require no further appraisal and IOG is progressing exclusive discussions regarding an export route for its SNS gas hubs. £1m upfront. Up to £4m deferred.


Northamber (NAR.L) 32p £9.01m

FYjun16E results from the longest established trade-only distributor of IT equipment in the UK.  Reports increase in gross profit to £4.8 from £4.6m, driven by a margin improvement to 7.8%  from just over 7%, against a challenging industry background. Shows the traction in evolving the business. Sales down to £61.8m from £65.4m. Op losses of £1.3m from £0.9m. Cash of £5.4m. Post Brexit gloom not materialised but remains cautious. Focussing on higher margin consultative sales solutions. 0.1p dividend.


Mirada (MIRA.L) 4p £5.56m

The audio-visual content interaction specialist, has announced an update on its largest customer deployment.  The rollout of the Iris product across izzi Telecom’s full client base continues to progress well. Furthermore, Mirada has reached a milestone in this rollout with the successful installation of the first 500,000 set-top boxes using Mirada’s software.


Distil (DIS.L) 1.35p £6.75m

HYSep16 results from the specialist in premium drinks brands. Revenue increased by 25.7% to £0.67m. Reduction in operating loss of 25.8% to £66k. RedLeg spiced Rum approved by TTB for sale in the USA.  New listings for RedLeg in two major retail groups. New listing for Blackwoods Vintage Dry Gin in major UK retailer. Cash of £0.88m. FYMar17E forecasts of £1.5m and PBT of £0.12m look beatable given seasonality and new listings. GBP invoicing and drive to source local ingredients has softened impact from Sterling devaluation.


BNN Technology (BNN.L) 144p £295.6m

The Chinese technology, content and services company, announced that it has submitted an initial application to list its American Depositary Shares on the Nasdaq stock market.  ‘Trading in the Company’s shares on AIM is not affected in any way by this filing.’ The company is targeting a full Nasdaq listing in due course. FY16E revenues of £15.2m and £2.1m pre-tax loss. Fy17E suggesting high growth. Revs of £85.1m and £47.1m PBT.


Head Chef:

Emily Liu, CFA, CAIA
0203 764 2344

Sous Chef:

Sacha Morris
0203 764 2345

*A corporate client of Hybridan LLP


This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.

The information contained in this document is based on materials and sources that are believed to be reliable; however, such information has not been independently verified and therefore it is not possible to confirm such information as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.

The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).

Any and all opinions expressed are current as of the date appearing on this face of this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.

This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.

In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as relevant persons). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.

Neither this document, nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.

Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.

Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.

This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.

MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.

Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.

If you would like to unsubscribe, please email with “unsubscribe me”.