Small Cap Feast

Small Cap Feast – 2nd November 2016

Dish of the Day:

No AIM Joiners Today

Off the Menu:

No AIM Leavers Today

What’s Cooking in the IPO Kitchen?

FreeAgent—Schedule one now out from the provider of accounting software to small businesses. Date and quantum of raise still to be disclosed

Civitas Social Housing –Intention to float on Main Market from the first REIT to be listed on the London Stock Exchange offering pure play exposure to social housing

Filta— AIM Schedule One update  from  the provider of a number of services to national and independent commercial kitchen operators and owners.   Targets 4 November listing. Seeking £4.3m new equity plus £1.9m shareholder sale

Breakfast Buffet

InnovaDerma* (IDP.L) 107.5p £10.98m

Strong news flow this week from the  main market listed  UK developer of ‘at-home’ and clinically proven treatments for hair loss, hair care, self-tanning and skin rejuvenation.—FYJun16 results driven by organic growth and transformation of Skinny Tan business.  Revenue up to A$8.4m from A$1.05m. PBT of A$0.57m from a loss of A$0.9m.— Successfully entered the US market and secured retail and e-tailer distribution deals for Skinny Tan . Initial roll out to 655 of GNC’s 6000 stores. Available on owned by an Amazon subsidiary and, a Wal-Mart subsidiary.


Sareum Holdings* (SAR.L) 0.975p £25.79m

FYJun16 results from the specialist cancer drug discovery and development business. Net loss of £1.05m in line with our expectations. Chk1 trials opened in period leading to license deal post-period end. $1.9m up front payment, £300k repayment, up to $88.4m in milestones plus share of sales royalties. TYK2 lead inhibitors show good activity in disease models of rheumatoid arthritis and colitis, & compare favourably with a marketed JAK-family kinase inhibitor. Also being evaluated for Lupus. Post year end successful outcome on TYK2 cancer feasibility study.

Venn Life Sciences*(VENN.L) 22.25p £13.4m

The growing Contract Research Organisation providing drug development, clinical trial management and resourcing solutions to pharmaceutical, biotechnology and medical device clients, has announced Director share purchases by the recently appointed Chairman Allan Wood. 65,000 shares at 21.5p and 165,000 shares at 21.73p.

Allergy Therapeutics (AGY.L) 23.25p £137.96m

The fully integrated pharmaceutical company specialising in allergy vaccines, today announced that the European Patent Office has granted a broad technology patent relating to the Company’s unique Microcrystalline Tyrosine (MCT) depot adjuvant manufacturing process. This patent covers the novel manufacture and physiochemical characteristics of MCT in combination with one or more antigens, further strengthening the Company’s core intellectual property. FYJun17E revs of £56.4m and £4m pre-tax loss.

Pires Investments (PIRI.L) 3.75p £0.43m

The company seeking to invest principally, but not exclusively in the resources and energy sectors has raised £525k gross at 3p per share, a 20% discount to yesterday’s close. The Proceeds of the Placing are to be used to provide the Company with additional funds for working capital and investments.


Water Intelligence (WATR.L) 81p £8.6m

The provider of non-invasive leak detection and remediation solutions, is acquiring ADV and, pending a regulatory clearance that is expected in the near-term, AWL. Both Australian Companies, located in Sydney, are part of a former franchise of American Leak Detection – a core business unit of Water Intelligence.  Total consideration is US$434,000.  Based on the trailing twelve months sales and PBT from the end of Q3 2016 to the end of Q3 2015, the acquisitions are anticipated to be accretive to earnings. FY16E Rev £7.48m and 6.36p EPS.


Caledonia Mining Corp (CMCL.L) 118.5p £62m

The 49% owner of the Blanket Mine in Zimbabwe has  revised 2016 earnings guidance. Production at the Blanket mine continues as expected and at the current gold price Caledonia expects to meet market  revenue expectations. Underlying performance remains in line with market expectations.   However FX, share based payments due to increased share price and non-recurring costs relating to the evaluation of investments mean EPS now expected to be below expectations but significantly higher than FY15. FYDec16E rev £43.34m. EPS 19.12p.

Totally (TLY.L) 59p £11.8m

The provider of a range of out-of-hospital services to the healthcare sector in the UK, announced that About Health Limited, a provider of community based dermatology services under contract to the NHS since 2009 and a wholly owned operating subsidiary of Totally, has been awarded a three-year contract renewal following a formal tender process with NHS East Lancashire Clinical Commissioning Group. The Contract is worth £763,633 per annum.

Gaming Realms (GMR.L) 19.02p £53.11m

Q3 trading update from developer, publisher and licensor of mobile real money and social games. Real money net gaming revenue increased by 113% to £5.9 million. Social gaming and licensing revenue increased by 189% to £2.5m. Maiden EBITDA profit of £960k. FYDec16E revenues of £36.3m and pre-tax loss of £2.3m. Fy17E £54.4m revenues and £4.1m pre-tax profit.


Ceres Power (CWR.L) 9.9p £99.67m

The latest iteration of the SteelCell (fuel cells) platform (version 4) has been released to customers on time and on budget, reinforcing the Company’s reputation for successfully executing against its technology roadmap. Higher power density & start-up timescales compatible with vehicle applications have been proven, making the platform increasingly commercially attractive in a growing number of markets. FYJun16E revs of £1m. £12.98m loss.

Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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