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.
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
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.
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 Slingo.com, Pocketfruity.com and SpinGenie.com 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.
0203 764 2344
*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 firstname.lastname@example.org with “unsubscribe me”.