Small Cap Feast

Small Cap Feast – 31st March 2017

Dish of the Day:

No AIM Joiners Today

Off the Menu:

No AIM Leavers today

What’s Cooking in the IPO Kitchen?

AppBox Media— Intention to Float— UK based developer of mobile applications and video games, considering LSE or NASDAQ   listing in 2018

Integumen— Intention to Float from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.25m at 5p. Expected market cap £8.25m. Admission expected 5 April.

Franchise Brands—Schedule 1 detailing £28m reverse takeover of Metro Rod. Admission expected 11 April.

Alpha FX Group— Schedule 1 from the foreign exchange provider focused on managing exchange rate risk for UK corporates that trade internationally.  Fundraise TBC. Admission expected 7 April.

K3 Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC.

Tufton Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.


Breakfast Buffet

Trafalgar New Homes (TRAF.L) 0.88p £2.09m

Trading update from the residential property developer operating in SE England for FYMar2017. Not yet completed sales of units at Burnside Tunbridge wells and is not expecting to record H217 revenue. However, the Board is confident of realising sales on these developments during 2017. Revenues from the sales of units at these two sites is therefore expected to contribute to the financial year ending 31 March 2018. Also anticipates that sales from other developments at Hildenborough Kent,  Speldhurst-Tunbridge Wells, and Sheerness, Kent, which are due for completion from May 2017 onwards, will also contribute to revenues for the financial year ending 31 March 2018. There are no market forecasts.


Safestay (SSTY.L) 48.5p £16.6m

The owner and operator of a new brand of contemporary hostel,  has agreed an £18.4 million debt restructuring and refinancing. This will replace the existing convertible and bank debt with a single banking facility with HSBC. The net effect of this will be to significantly reduce cost of debt and repay all outstanding convertible loans when they become due. Safestay has also completed sale and leaseback transactions on its hostels in Edinburgh and Elephant & Castle raising gross cash proceeds of £12.6 million.  The £12.6 million being realised equates to a net asset increase of 37p per share. FYDec17 £8.2m rev and £0.35m loss.


RedT Energy (RED.L) 8.75p £57.22m

The energy storage technology company, announced that today, a Gen 2 energy storage machine is being delivered to its customer, University of Strathclyde. The 5kW, 20kWh liquid energy storage machine will be used alongside the grid and connected renewables as part of a joint project between the University and Gaia Wind at a site in Glasgow, Scotland and will be used to demonstrate the  commercial case for storage in the UK for Gaia Wind’s customers. redT also notes that its manufacturing partner Jabil Circuit Inc (NYSE:JBL) will be closing its Livingston manufacturing plant. The Company wishes to make it clear that Jabil’s recent announcement does not have a material effect on the redT business and the fulfilment of orders.  FYDec17E £15,93m rev and £5.58m loss.


NetScientific (NSCI.L) 54.5p £27.84m

The transatlantic healthcare IP commercialisation Group, announces that its portfolio company, Vortex Biosciences, today announced the publication of two recent papers that further validate its circulating tumour cell (CTC) capture technology. The papers, published on 23 March, 2017 in Nature Communications and at the forthcoming American Association for Cancer Research (AACR) Annual Meeting 2017 (April 1-5 2017, Washington D.C.), add to a growing body of literature on the patented microfluidic technology, underscoring the role it can play in enhancing our understanding of cancer biology.


Independent Oil & Gas (IOG.L) 16.25p £17.76m

“The development and production focused Oil and Gas Company, is now close to signing the Sale and Purchase Agreement (“SPA”) for the UK Southern North Sea (“SNS”) pipeline which is expected to be used to deliver IOG’s gas to shore. The document is in near final form and should be signed by all parties shortly. Accordingly, the Memorandum of Understanding (“MOU”) which includes exclusivity provisions has been extended by 2 weeks to 13th April 2017. All parties are working hard to get this document signed as soon as possible and more details will be released then.”


ECO (Atlantic) Oil & Gas (ECO.L) 17.62p £14.67m

The oil and gas exploration company with licences in Guyana and Namibia, notes the announcement made overnight by ExxonMobil Corporation in relation to another new oil discovery in Guyana on its Snoek Oil Prospect, of 82 feet of high quality  oil-bearing sandstone reservoir on the Stabroek Block, just 5 miles southeast of the Liza 1 discovery and in very close proximity to Eco Atlantic’s 1,800 km2 Orinduik Block. The Company continues its enhanced work programme on the Orinduik Block in partnership with Tullow (Eco Guyana 40%, Tullow 60% – Operator) and will update the market in due course on developments in respect of its ongoing operations in Guyana.


Numis Corporation (NUM.L) 235.5p £267.17m

HYMar16 trading update. Rising UK equity markets are helping institutional commissions and trading outperform. ‘Conversely, we have seen a paucity of primary equity issuance in the UK market as a whole and the increase in M&A activity has yet to fully benefit our top line.  Whilst we are not immune to such conditions, the corporate side of our business has experienced higher transaction volumes in non-primary activity than the same period last year, reflecting the quality of our client base.’ ‘Total income will be moderately below the first half of last year. We have a number of corporate transactions which are due to complete in April 2017 and based on the strength of our pipeline, we remain confident in the outturn for the full year.’ FYSep17E rev of £113.08m and £38.93m PBT.


Oxford Pharmascience (OXP.L) 1.65p £19.89m

The speciality pharmaceutical company that redevelops medicines to make them better, safer and easier to take, confirms that yesterday it received feedback from the FDA in respect of its pre-investigational new drug (‘IND’) meeting package for its OXPzero™ Ibuprofen prescription (‘Rx’) programme. The FDA has not agreed with the with the proposed phase III study design based on endoscopic primary endpoints  provisionally agreed with the MHRA. There are a number of alternatives under consideration. FDA feedback in respect of the Company’s pre-IND meeting package for the OXPzero™ Ibuprofen over-the-counter (‘OTC’) programme remains outstanding but is  expected shortly.


Capital For Colleagues (NEX:CFCP) 45p £4.3m

Quarterly investment update from the investment vehicle focused on opportunities in the Employee Owned Business  sector.  Portfolio comprised of 15 unquoted EOBs at the end of the quarter. Net Asset Value (‘NAV’) of GBP 4,190,852 (: GBP 5,205,581). Following the failure of two investee companies the Company has reviewed its investment policy and still believes there are good opportunities in the sector. The Directors propose to raise up to GBP 2.0 million through a pre-emptive issue of new ordinary shares at a price of 42p per share (NAV 43.54p). Reducing cash burn through share based remuneration measures.


DHAIS (NEX:DHAP) 17p £10.6m

HYDec16 results. Going through a period of rationalisation with the exit of 5 stores leading to turnover falling from £5.1m to £4.2m. £16k operating profit against a £32k loss.  The directors of the Group are continuing to review options for the Mobility division and focusing on the expansion of the Hearing Aid division, which continues to offer significant growth and profit potential. The advertising activities of the Group are being varied  accordingly.


Head Chef:

Emily Liu, CFA, CAIA
0203 764 2344

Sous Chef:

Sacha Morris
0203 764 2345

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