Small Cap Feast

Small Cap Feast – 2nd December 2016

Dish of the Day:

ThinkSmart has joined AIM having delisted from the ASX. Provides lease finance on electronics for the likes of Dixons and Carphone Warehouse customers.  No fundraising.

BB Healthcare Trust has joined the Main Market raising £150M gross.


Off the Menu:

No AIM Leavers Today

What’s Cooking in the IPO Kitchen?

Big Sofa Technologies— Schedule 1 from the b2b technology company providing video analytics at an enterprise level. Seeking to complete RTO of unlisted HubCo investments. Raising £6.1m. Target date 19 December.

ECSC—Schedule 1 from provider of cyber security services. Raising £5m. Vendor sale £0.8m. Target date 14 Dec. Expected market cap £15m.

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

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

Capital for Colleagues (ISDX:CFCP) 62.5p £6m

The investment vehicle focused on opportunities in the Employee Owned Business  sector, updated regarding its existing investee company, Hire & Supplies Limited. £300k of debt and preference shares has been converted into ordinary shares. ‘Our restructured investment in H&S underlines our intention to align the Company’s interests more directly with those of our investee companies’ employee owners. We will continue to prioritise direct equity participation as our portfolio companies mature and this type of capital structure becomes more appropriate – for both us and our investees’.

Impax Asset Management (IPX.L) 52.75p £58.85m

Having attended yesterday’s analyst meeting we thought it worthwhile mentioning this week’s announcement that IMPAX has  raised 149m for its third private equity renewable energy infrastructure private equity fund, Impax New Energy Investors III. As part of this fund raising, Impax has committed to invest 4m, in NEFIII. The Fund will focus on investment opportunities in independent power companies and projects in the renewable energy sector in Europe. The Company expects to announce a final close of NEFIII within the next fifteen months.


Kibo Mining (KIBO.L) 9.75p £24.45m

The proposed acquisition for Opera to acquire the Imweru and Lubando gold projects from Kibo Mining  is progressing well and is at an advanced stage. Both Kibo and Opera have been working hard alongside their professional advisers to process the considerable and appropriate transaction documentation and are pleased with progress to date.  It is likely that the fundraising required to complete the Proposed Acquisition will take place early in the New Year and every effort is being made to complete the transaction as soon as possible.


Safecharge International Group (SCH.L) 267.5p £332.43m

Trading and strategic update from the global provider of payments services, technologies and risk management solutions for online and mobile businesses. FY2016  expected to be in line with market expectations.  The Company is making considerable progress in its strategy to win Tier 1 customers within both traditional verticals and in new target verticals and markets. Tier 1 customers increasing revenue quality. New territories entered in Europe.  FYDec16E revenue £80.9m, EPS 15.45p, div 12.56p.


Elektron Technology (EKT.L) 7.12p £13.26m

The global technology group, has completed the sale of the business and assets (excluding trade debtors and creditors) of Wallace to C & M Projects Limited for a total gross consideration of £0.3million cash payable on completion. Wallace is a manufacturer of rubber testing instruments.  On an adjusted basis Wallace was at break even for FYJan16. The sale is part of the Group’s rationalisation of its portfolio, focusing its investment on the core segments of Connectivity, IMC (Instrumentation, Monitoring and Control) portfolio and Checkit.


Prospex Oil and Gas (PXOG.L) 2.2p £6.29m

The investment company, has updated on its investment in the Kolo Licence, onshore Poland.  The well drilling plan has been approved by the Polish Mining Authority to drill the Boleslaw-1 well  in the 1,150 sq km Licence.  The approval of the plan represents the final regulatory milestone ahead of drilling Boleslaw-1, which is targeting gas in an active petroleum system.  Boleslaw-1 remains on track to be drilled in December 2016.  Competent Persons Report estimates  a gross best estimate of 87 bscf and a risked current valuation (net to Prospex) ranging from US$7.1m to US$12.2m.


IndigoVision Group (IND.L) 156p £11.86m

Trading update for the year ending 31 December 2016. The Group successfully launched its tiered Control Centre video management software as planned on 1 November 2016.  This expansion of the software range is expected to widen the available market opportunities for the Group and reduce, over time, the volatility arising from larger, project-related sales.  H2 revenues are running ahead, with camera volumes up 20% year on year largely offset by lower selling prices.  Limited impact on gross margin due to hardware strategy. Overheads down. Expects overall FY profit vs FYDec15 op loss of $0.7m.


Amryt Pharma (AMYT.L) 13.75p £28.65m

The clinical-stage specialty pharmaceutical company focused on best-in-class treatments for rare and orphan diseases, has entered into a 20m facility agreement with the European Investment Bank on highly attractive terms for the Company. The Facility is significant because it provides non-dilutive funding that secures the Company’s near and mid-term funding needs for its lead product, Episalvan. It also provides the funding required to progress the Company’s orphan designated acromegaly drug compound, AP 102, through pre-clinical development and into the clinic.


Arcontech (ARC.L) 37.5p £6.7m

The provider of products and services for real-time financial market data processing and trading, has announced additional agreements with existing clients to the value of approximately £115,000 pa in new annual recurring revenue as a result of new software licenses provided to those clients. The Agreements are effective from 1st December 2016. The three  clients are based in the U.K., Germany and Scandinavia and the licenses are for the Arcontech Symbol mapper, Cache with Calculations Engine and Excelerator products.


Gaming Realms (GMR.L) 15.87p £43.5m

Gaming Realms has been awarded the prestigious Mobile Casino Product of the year 2016 for the proprietary mobile casino platform which includes, and at the E-Gaming Review Awards. Slingo is an online multiplayer game featuring a mix of slots and bingo and has been played by over 55 million people since it was created in 1995. The award was won in a strong category which included Unibet, Leo Vegas and Mr Green. Consensus suggests loss in FYDec16 with  strong growth in 2017 with estimated rev £54.4m and 12.5x PE.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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