Small Cap Feast

Small Cap Feast – 28th September 2016

Dish of the Day:

No AIM Primary Today

Off the Menu:

No AIM Leavers Today

What’s Cooking in the IPO Kitchen?

Saudi Aramco—Press reports the Saudi national oil company is considering an IPO. London, NYSE, and Hong Kong in running

Krispy Kreme UK—Press reports that Alcuin Capital Partners, the owner of  the doughnut chain is seeking a London float this year

Biffa— Intention to float announcement states that up to £270m  is to be raised to pay down debt and historic landfill tax liability

Bacanora Lithium— To list on AIM around 28 Sep as holding company for TSX listed Bacanora Minerals at £100m market cap


Breakfast Buffet

Venn Life Science Holdings* (VENN.L) 28.5p £17.17m

H1Jun16 interims from the growing Contract Research Organisation. Revenue +113% to 9.06m. EBITDA profit 0.4m from 0.09m. Progress on Kinesis integration and initial cross sales achieved. Sale process for innovation division Innovenn underway to realise value from the investment and bring better clarity to the core business performance. Our FYDec16E forecasts look for 17m sales and adjusted diluted EPS of 2.69c. A PE of 12.3x. Cash and equivalents of €2.1m as at 23 September.


Coral Products (CRU.L) 20.25p £16.7m

AGM statement from the UK specialists in the design, manufacture and supply of injection moulded products.  Trading after the first 4 months of the current year is in line with management’s expectations. Sales and Profits are both substantially ahead of same period for last year in spite of the negative impact of the significant fall in the value of sterling relative to the dollar and euro during this year. The recently merged tatra rotalac business is now fully operational and is poised for further improvement.  FYApr17E revenues £24.7m. PBT £2.07m. EPS 2.3p. Div 1.2p.


easyHotel (EZH.L) 84.5p £52.8m

The owner, developer, operator and franchisor of “super budget” branded hotels  has announced a £38m conditional placing at a price of 100p, an 18.3% premium to yesterday’s close. The proceeds of the placing are to be primarily utilised to fund the owned hotel roll-out strategy.  The Board expects the investment of new capital in the hotel pipeline to be materially earnings per share enhancing in the medium term. FY Sep 16E £5.88m revenues and £0.84m PBT.


Totally (TLY.L) 81p £13.3m

The provider of a range of services to the healthcare sector  has announced H1Jun16 interims. Turnover of £936k from £418k. EBITDA loss excluding acquisition costs £406k from £69k. Two acquisitions completed and successfully integrated during H1:Premier Physical Healthcare a provider of physical healthcare services to public & private patients, for up to £6.75m and subscription to raise £6.2m. About Health, a provider of community based health services under contract to the NHS with a focus on dermatology services, for up to £7.7m.


Snoozebox Holdings (ZZZ.L) 0.65p £1.92m

The provider of portable hotels has announced H1Jun Interims. Revenue decreased to £2.2m (H1 15: £2.4m).  Adjusted EBITDA loss decreased to £0.8m (H1 15: £1.7m).  Net debt down to £3.2m from £5.4m following sale and lease back and net placing of £4.5m in January at 6p. Cost cutting continues with an aim of reducing central overhead cash costs to approximately £0.1m per month entering 2017 (approximately £0.3m per month on average in H1 16).  A number of sales opportunities  progress but lead times remain long.


Ebiquity (EBQ.L) 103p £79.52m

H1 Jun16 results from the independent marketing analytics specialists. Total revenue up 6.8% on a reported basis to £42.3m. Underlying PBT up 8.5% to £8.0m. Net debt decreased by £0.8m to £28.1m. “Overall the activity over the first six months has combined to provide forward momentum into the second half and we expect to be in line with the Board’s expectations for the full year.” FYDec16E revenues of £82.2m and EPS of 11p. 9.4x PE. 0.5% yield.


Inspiration Healthcare (IHC.L) 71p £21.77m

H1Jul16 results from the global medical device company. Sales on a pro forma basis grew by 10% to £7.1m with strong growth in Critical Care. Operating profit on a pro forma basis grew 12% to £0.6m.  Cash remains strong ending the half year at £3.0m (from £2.3m at 31 January 2016).  FY expectations remain unchanged.  Recurring revenues remain a strong contributor to sales. Good long term potential from new and early stage products. FYJan17E revenues of £14.3m and EPS of 3.3p


Plastics Capital (PLC.L) 111p £39.56m

Trading update from the  niche manufacturer of specialist plastic products.  The Company continues to trade in line with market expectations.  Trading during the six-month period since 31 March 2016 shows improvement on the prior year, primarily due to organic sales growth in the Industrial Division, and the initial contribution from Synpac in the Films Division, which was acquired in July 2016.  FYMar17E revenues of £53.5m and EPS of 11.85p. 9.4xPE and a yield of  4.2%

IBEX Global Solutions(IBEX.L) 129.5p £31.8m

The provider of contact centre services and other business process outsourcing  solutions has released H1Jun16 results. Revenue up 7% to $255.5m.   Profit before tax of $7.1 million (2015: $7.2 million). Net assets of $27.6 million as of 30 June 2016 (30 June 2015: $25.5 million).  Intention to declare final dividend of 6.6 cents per share, representing a total dividend for the year of 11.7 cents per share. Anticipating growth to be driven by offshore and nearshore regions.


Armadale Capital (ACP.L) 6.13p £3.8m

The investment company focused on natural resource projects, announces it has entered into a binding Heads of Agreement with African Mining Services Pty Ltd  to form a joint venture to develop and operate the Mpokoto gold project in Katanga Province, Democratic Republic of Congo (‘DRC’). Mpokoto has an established resource of 678,000oz of gold (‘Au’) from 14.58m tonnes of ore at 1.45 g/t Au to produce circa 25,000oz annually over a nine-year mine life.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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