Small Cap Feast

Small Cap Feast – 31st January 2017

Dish of the Day:

No AIM Joiners Today

Off the Menu:

Having been acquired Constellation Healthcare Technologies  no longer trades on AIM

What’s Cooking in the IPO Kitchen?

Nando’s—The Telegraph reports rumours that the South African restaurant chain is exploring a London Listing.

Indigo Holdings— The Investment Vehicle for the purpose of making investments and/or acquisitions in the Middle East Frontier Markets, including the United Arab Emirates, Iraq, Kuwait, Qatar and Oman is expected to start trading on NEX on or around 10 February.

Impact healthcare REIT— Intends to float on the main market. Seeks to raise £160m to acquire a portfolio of up to 58 care homes. Expected Admission 7 March.


Breakfast Buffet

Challenger Acquisitions* (CHAL.L) 8.25p £1.89m

Challenger Acquisitions yesterday announced the disposal of its ‘Starneth’ subsidiaries. Upon closing of at least two major development projects by Starneth over the next two years, including the project in Jakarta where developer’s funding arrangements are awaiting finalisation, Challenger will receive up to US$6m in fees less a payment of €1.25m related to the payment that the Company was due to pay to the former Starneth vendors   One common equity unit of New York Wheel LLC will continue to be pledged until the €1.25m payment has been completed. On-going cooperation agreement for Challenger to provide potential funding options for select Giant Observation Wheel projects. This step will materially lessen Challenger’s immediate cash burn whilst leaving some exposure to upside from the Starneth pipeline.


Cambria Africa (CMB.L) 1.05p £2.22m

The long term, active investment company, building a portfolio of investments primarily in Zimbabwe is extending the closing date of its Open Offer to 15 February to allow shareholders more time to consider the recent trading update indicating that Payserv, the Company’s largest subsidiary, achieved a 131% increase in Profit Before Tax for the 4 months ended 31 December 2016. The Open Offer Issue Price of 1.00p per share represents a discount of 16.7% to the closing price of 1.20p on Friday, 27 January 2017 and a 17.4% discount to the 10-day Volume Weighted Average Price of 1.21p.


Tern (TERN.L) 8.75p £10.37m

The investment company specialising in the Internet of Things, has updated on Device Authority, one of its investee companies. George Samenuk, former Chairman and CEO of McAfee (NYSE: MFE), the world’s largest dedicated software security business, has joined Device Authority’s  board as a Non-Executive Director.


TLA Worldwide (TLA.L) 25.5p £36.57m

The athlete representation and sports marketing business, for the second successive year  will bring the 2017 College American Football season opener to Sydney, Australia. This is the second American College Football event TLA has organised in Australia following the success of last year’s inaugural College Football Sydney Cup which saw the University of California, Berkeley defeat the University of Hawaii in front of close to 62,000 fans. FYDec16E rev of £38.9m and PBT of £11m. EPS 4.3p and div of 1.2p.


GAMA Aviation (GMAA.L) 202p £88.87m

GAMA’s European Ground division has signed a Europe-wide maintenance agreement with WIJET, which recently acquired Blink. From its Oxford (UK) base, Gama Aviation will provide full base and line maintenance support for WIJET’s fleet of fifteen Cessna Citation Mustangs, in addition to providing Aircraft On Ground support across Europe to ensure aircraft availability. The first Mustang has already arrived at Oxford to begin routine checks; the other fourteen are due by the end of April.


Earthport (EPO.L) 23.25p £113.4m

HY Dec17 trading update from the payment network for cross-border payments. Revenues expected to be approximately £14.3m, an increase of 35%. Transactional revenues comprised more than 95% of total revenue. Gross margin at approximately 70%. Cash balance at period end was approximately £11.4m. Payment volume reached $7.8 billion, an increase of more than 96% from H1 FY16. FY Dec16E rev of £337.39m and PBT of £11.1m.


Eland Oil & Gas (ELA.L) 46.25p £86.17m

The oil & gas development and exploration company operating in West Africa with an initial focus on Nigeria,  has finalised the implementation of crude export from Opuama Field through shipping. Production has restarted into the main storage vessel and the shuttle vessel will shortly arrive on site with transport of the crude commencing thereafter. The Company is initially producing from the Opuama-3 well only, which produced a gross volume of c.10,000 barrels of oil over the 24-hour period between 4pm 29 January and 4pm yesterday, 30 January. Although the Company will initially produce from Opuama-3, the system has the capacity to handle greater quantities of production as other wells are brought online.


Stride Gaming (STR.L) 227p £152.9m

AGM Statement from the online gaming operator. “Performance in the financial year is in line with management expectations. Performance of the real money gaming vertical has been strong which has more than offset weaker than expected performance in the social gaming vertical. The organic growth of the business is encouraging and the integration of 8Ball, Netboost Media and the Tarco Assets, the online bingo businesses which we acquired in August 2016 for up to £70.2 million is progressing in line with management expectation.” FYAUG17E rev of £88.45 and PBT of £18.4m.


Kodal Minerals (KOD.L) 0.47p £24.4m

The mineral exploration and development company with interests in West Africa, has recommenced field work at the Bougouni Lithium project in Mali  with a programme of surface mapping, rock chip sampling and trench excavation of the strike extensions of identified lithium mineralised pegmatite units. The Company expects that this continued exploration programme will define additional targets for reconnaissance drill testing for a follow-on drilling programme which is expected to commence in February 2017. Kodal expects to receive the sample results imminently for the reconnaissance reverse circulation drilling programme, which was completed in December 2016.


Eagle Eye Solutions Group (EYE.L) 144.5p £32.02m

The SaaS technology company that validates and redeems digital promotions in real-time for the grocery, retail and hospitality industries, has issued an H1 Dec 16 trading update. Group revenue increased by c.72% to £5.1m  and ahead of market expectations of £4.8m. Accelerating revenue growth half-on-half, 44% H1 2017 on H2 2016. “This reflects a period of strong operational progress where we have continued to deepen our tier 1 customer relationships and increase transactions through the platform. This strong operational momentum gives the Board confidence in the Group’s prospects including delivering expectations for the full year.” FYJun17E rev of £10.7m and pre-tax loss of £3m.


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Emily Liu, CFA, CAIA
0203 764 2344

Sous Chef:

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0203 764 2345

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