Small Cap Feast

Small Cap Feast – 29th November 2016

Dish of the Day:

No AIM Joiners Today

Off the Menu:

No AIM Leavers Today

What’s Cooking in the IPO Kitchen?

Asia Pacific Investment Partner  – the research-driven emerging and frontier markets real estate development business intends to float on AIM and conduct a placing in December

RM Secured Direct Lending  –  The secured direct lending fund  intends to float on the Main Market on 15 December raising up to £100m

Diversified Oil & Gas— Schedule One now out. $60m to be raised. Expected admission 6 December.

Creo Medical Group —UK based medical device company focused on surgical endoscopy, a recent development in minimally invasive surgery. Admission due 7 December. Fundraising details TBA.


Breakfast Buffet

Mosman Oil & Gas (MSMN.L) 1.7p £3.5m

Mosman has updated on its proposed 90% acquisition of Pine Mills producing oil field located in Wood County, Texas. Mosman has today been advised by Cue Energy Resources that it will not close the acquisition with Mosman as the pre- emptive right held by a subsidiary of Gale Force has been exercised. Mosman has immediately referred this matter to its lawyers who are currently reviewing the contractual validity of the purported pre-emption.


Greatland Gold (GGP.L) 0.16p £2.53m

The precious and base metals exploration and development announced that drilling has commenced at its Warrentinna project in Tasmania, Australia.  The current drilling programme includes plans for six angled reverse circulation (RC) drill  holes each to a depth of 100 metres, for a total of approximately 600 metres of RC drilling;  The current drilling programme will test for extensions to mineralisation at Derby North and  test for mineralisation below historic workings in the Golden Mara area.


Crawshaw Group (CRAW.L) 22.5p £17.8m

The fresh meat and food-to-go retailer, notes the recent movement in its share price and confirm the Group continues to trade in line with management expectations. The LFL sales performance of the Group has improved from -15.8% for the first 7 weeks of H2 to -8.1% for the 4 weeks ended 27 November 2016 driven by a 13% improvement in customer numbers. Expects  rate of improvement in LFL sales to further improve in December as returning customer’s trade across the breadth of its seasonal offer and existing customers benefit from better value Xmas meat hampers and redeeming their savings club cards. On less than 0.5x FYJan17  revenue.


CityFibre Infrastructure Hldgs (CITY.L)56.5 p £150.1m

The designer, builder, owner, and operator of fibre optic infrastructure in UK towns and cities, announced that it has begun a roll-out of dense full-fibre networks in business parks across its 40 city UK footprint to reach more than 500 business parks. Over 22,000 SMEs will benefit from low-cost access to world-class, gigabit-speed internet services delivered over the new infrastructure in or near CityFibre’s existing networks. The first parks targeted for upgrade are in the Company’s Gigabit City projects Coventry, Bristol and Peterborough. FYDEC16E rev £15m, pre-tax loss £10.6m.


IG Design Group (IGR.L) 276.5p £173.2m

H1Sep16 results from the designers, innovators and manufacturers of gift packaging, greetings, stationery, creative play products and giftware. Sales up 21.5% to £145.5m.  GP up 40.8% to £30.8m. Underlying Earnings Per Share up 50.0% to 9.6p .  ‘With a substantial order book in place for the remainder of the year, we are on course to deliver a full year financial performance ahead of market expectations. Further we are sufficiently confident with the prospects for profits growth and cash generation to increase the total dividend expectation for the full year to 4p’


Ergomed (ERGO.L) 132.5p £52.82m

The pharmaceutical services and drug development company, today announces the acquisition of European PharmInvent Services s.r.o. (“PharmInvent”), a leading European pharmacovigilance and regulatory services busines. Initial consideration of 4.8m, with contingent consideration based on the achievement of EBITDA targets for 2016, 2017 and 2018 of up to €3.2m. 80% cash. 20% shares.  IN FY2015 PharmInvent reported revenue of €3.0million and adjusted EBITDA of €0.7million. ERGO FYDec16E rev of £35.85m and PBT of £1.67m.


LGO Energy (LGO.L) 0.11p £8.21m

LGO today confirmed the successful conclusion of negotiations for the sale of over 10,000 barrels of oil stocks in Spain.   The oil has been sold at a price competitive with local fuel oil, and the funds generated will be used in CPS operations and general corporate working capital. In separate news from the Ayoluengo Field, the CPS-owned workover rig has recently undergone a two yearly mechanical recertification and has now been returned to service.

Judges Scientific (JDG.L) 1347.5p £82.3m

The group involved in the buy and build of scientific instrument businesses, announces that it has today acquired 100% of the issued share capital of EWB Solutions Ltd, a maker of scientific devices based in Hemel Hempstead, Hertfordshire.  EWB manufactures edge-welded bellows used in Ultra High Vacuum (“UHV”) systems and various other applications.  The Board expects the Acquisition to be immediately earnings enhancing.  Cash consideration of £1.76m. Vs FYApr16 rev of £1.2m and PBT of £0.5m. Financed by Lloyds facility. On a FYDec16E PE of 16.7x.


Versarien (VRS.L) 12.5p £14.98m

The advanced materials group, has announced the receipt of a further significant graphene order for a carbon fibre composite related OEM application. Versarien has now received an order with a value of over £100,000 for graphene in the form of Few Layer Graphene Nano Platelets (“GNPs”) from a European commercial customer, in conjunction with the National Graphene Institute. FY Mar 17E revenues of £7.6m and pre-tax loss of £0.3m.


Cyprotex (CRX.L) 159.25p £35.85m

The specialist ADME-Tox Contract Research Organisation (CRO), today announces the launch of h-CLAT (human Cell Line Activation Test), an in vitro service for determining skin sensitisation potential. Cyprotex have developed this test in response to the recently released OECD (Organisation for Economic Co-operation and Development) test guideline 442E. The European Union, along with many other countries throughout the world, have now implemented a complete ban on animal testing within the cosmetics industry.  There are no market forecasts.


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Emily Liu, CFA, CAIA
0203 764 2344

Sous Chef:

Sacha Morris
0203 764 2345

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