Small Cap Feast

Small Cap Feast – 4th October 2016

Dish of the Day:

No AIM Primary Today

Off the Menu:

Avanti Capital (AVA.L) delisting after the sale of core investments

What’s Cooking in the IPO Kitchen?

Premier Asset Management— the retail asset management group has raised £63.7m at  132p and is due to join AIM on 7 October.

ConvaTec — The medical products manufacturer is expected to announce a planned London IPO according to City A.M. Other reports suggest a valuation of circa £5 billion.

O2—Press reports that Telefonica will bring O2 to the LSE this year with a large retail offer. This has not yet been confirmed

Biffa— Intention to float announcement states that up to £270m  is to be raised to pay down debt and historic landfill tax liability.

 

Breakfast Buffet

TMT Investments* (TMT.L) $2.13 $58.96

Following five years of active investing activity since  admission AIM in December 2010 and the successful partial cash exit from Depositphotos in March 2016, the Company’s Board  has resolved to declare a one-off dividend  for a total amount of US$2,774,496, or US$0.10 per ordinary share.  The dividend payment will be made on 18 November 2016.  The record date for the payment of the dividend for all ordinary shares is 4 November 2016, with an ex-dividend date of 3 November 2016.

 

Milestone Group* (MSG.L) 1p £7.84m

The provider of digital media and technology solutions and the Social Stock Exchange  has announced the signing of a cooperation agreement with the Social Stock Exchange specifically aimed at generating revenues, building membership and raising the profile of both organisations. The  agreement will involve, introducing new members to each organisation, joint promotion, developing strategic partnerships and establishing an investment fund.

 

Venn Life Sciences* (VENN.L) 22.13p £13.3m

The growing Contract Research Organisation has announced an agreement to sell its Innovation Division Innovenn for up to £4.74m largely in shares in Integumen. A book gain of circa £959k. Integumen plans to seek admission to AIM in due course and plans to raise capital to fund the future development and commercialisation of the technology portfolio. In addition to the acquisition of Innovenn, Integumen is in the process of acquiring three complementary businesses  in the areas of Skin Science, Oral-health and Woundcare.

 

AB Dynamics (ABDP.L) 477.5p £84.83m

FYAUG16 trading update from the designer, manufacturer and supplier of advanced testing systems and measurement products to the global automotive industry. The Group has performed well in 2016 and the Board expects to report revenues and profit before tax (excluding share option charge) in line with market forecasts. Construction of the new facility is in full progress with completion expected by the Q3 2017. FY16E revenues of £20.4m and EPS of 22.5p rising to28p for FY17E. 2016E PE of 21.2x and 0.6% yield.

 

Vela Technologies (VELA.L)0.15p £1.05m

The investing company focused on early stage and pre-IPO disruptive technology investments  is investing £200k in THEVIBE Ltd, a Lancashire-based disruptive ticketing platform. Vibe Tickets is currently undertaking a c.£600,000 equity fundraising through Crowdcube, the crowdfunding platform. Vibe Tickets is an open fan-to-fan ethical ticketing platform that allows fans to exchange tickets for face value or less with other trusted members of the Vibe community. Vibe is currently pre-revenue.

 

Digital Globe Services (DGS.L) 46.62p £13.88m

FYJun16 finals from the provider of digital marketing solutions for large, consumer-facing organisations. Record revenues. Revenue increased 19% to $47.8M. Gross margin compression in H2 due primarily to increased marketing investment in core business and new verticals. Gross margin for the year of 27.6% (32.7%). GP flat at $13.2m. Adjusted EBITDA of $2.5M ( $3.0M). Outlook: 2016 Investments will drive margin expansion and profitable growth for the year ahead. FY17 trading expected to show continued revenue growth and a significant increase in profitability.

 

Watkin Jones (WJG.L) 124.75p £318.45m

The UK developer and constructor of multi occupancy property assets, with a focus on the student accommodation sector, announced today that it has forward sold its development in St. Mungo Avenue, Glasgow to a new institutional investor for an undisclosed fee. The seven storey 349 bed scheme (176 cluster bedrooms and 173 studios) is due for delivery in August 2018, ahead of the 2018-19 academic year.

 

easyHotel (EZH.L) 101.5p £58.44m

The owner, developer, operator and franchisor of “super budget” branded hotels, confirms it has been granted planning permission for a 204-room easyHotel located on Gran Via, the main avenue of L’Hospitalet de Llobregat to the southwest of Barcelona. easyHotel’s acquisition of the land for the new build easyHotel is expected to complete in the coming weeks and the hotel is expected to open in early 2018.

 

FinnAust Mining (FAM.L) 7p £34.61m

The company with projects in Greenland & Finland, has announced significant advances in optimising the metallurgical processes required to produce an ilmenite concentrate from the Pituffik Titanium Project in Greenland. Successful test work demonstrates ability to produce a gravity-separated concentrate that compares favourably against existing ‘hard rock’ sources of ilmenite. Maiden JORC resource expected later this year ahead of a 2017 bulk sampling programme.

 

Volga Gas (VGAS.L) 48p £38.82m

The oil and gas exploration and production group operating in the Volga Region of Russia, has announced its average production volumes for August 2016 and for the year to date. Average Group production for the September 2016 was 7,927 barrels of oil equivalent per day (11.9% higher than August 2016).  This was the highest monthly production rate achieved in 2016

 

Head Chef:

Emily Liu, CFA, CAIA
0203 764 2344
emily.liu@hybridan.com

Sous Chef:

Sacha Morris
0203 764 2345
sacha.morris@hybridan.com

*A corporate client of Hybridan LLP

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