Small Cap Feast

Small Cap Feast – 5th December 2016

Dish of the Day:

No AIM Joiners Today

Off the Menu:

Sacoven and IBEX Global left AIM on Friday. GW Pharma has left 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. £20m to be raised on Admission with anticipated market cap of £61.2m

Breakfast Buffet

Physiomics* (PYC.L) 0.0214p £1.17m

The UK based systems biology company, announced it is now entitled to a payment from Sareum Holdings plc (SAR.L)* for a modelling project conducted  in 2010 in support of Sareum’s cancer drug joint research program with The Institute of Cancer Research & Cancer Research Technology Ltd, as announced in 2010, reflecting the contribution made to studying the optimal combination regime of a Chk1 inhibitor & chemotherapy. This follows the ProNAi license deal announced by Sareum in September. While not substantial, the payment will make a welcome contribution to Physiomics’ finances for the year.

Newmark Security (NWT.L) 1.2p £5.62m

The  provider of electronic and physical security systems, has launched its Sateon Advance access control system and GT-10 Android based terminal for workforce management, under subsidiary Grosvenor Technology’s brand. Additionally, Newmark has announced the launch of Alliance, a programme to provide opportunities for Newmark’s partners to mutually benefit.  FYAPR17E revenues of £22.2m and PBT of £0.6m. Div 0.1p. 11.5x PE.


Eco Animal Health (EAH.L) 507.5p £325.95m

EAH’s subsidiary ECO Animal Health do Brasil, has received a marketing authorisation from the Brazilian Ministry of Agriculture, Livestock and Supply (MAPA) for the use of Aivlosin® 625 mg/g water soluble granules in swine.  Aivlosin®, ECO’s patented antimicrobial, is used under veterinary prescription for the treatment of a variety of economically important respiratory and enteric (gut) diseases in poultry and pigs. Brazil is one of the world’s leading producers and exporters of pork. FYMaR17E revs £52.54m, PBT £10.63m. Div 6.29p.


Range Resources (RRL.L) 0.35p £26.59m

The QUN 160 development well in Trinidad that spudded on 9 November 2016 was successfully drilled to a total depth of 2,140ft on 22 November 2016. The well was originally planned to be drilled to 2,600ft, however it was decided not to drill below 2,140ft as the main target  had been encountered at this depth and further drilling would have contributed to an increase in cost with little to no benefit. During drilling, hydrocarbon sands and oil shows were encountered between 1084 & 2045ft. Production testing is expected to commence at the beginning of December.  Well GY 681 has also been spudded.


Action hotels (AHCG.L) 52.5p £77.5m

The owner, developer and asset manager of branded three and four-star hotels in the Middle East and Australia, has announced the formal opening of its third hotel in Oman, Mercure Sohar. The 151-bedroom freehold hotel, located in the heart of Sohar, is Action’s ninth collaboration with AccorHotels and the first Mercure-branded property in the portfolio. Early business enquiries have been encouraging. This brings the portfolio to 12 operational hotels and 2,181 rooms in six countries with the total pipeline set to take Action to 3,000 rooms by 2017.


Helios Underwriting (HUW.L) 160p £23.37m

In line with its strategy of increasing underwriting capacity through acquisition, on 2 December 2016 Helios acquired Salviscoint Limited Liability Partnership, a limited liability member of Lloyd’s, for a consideration of £0.8m in cash.  The 2016 underwriting capacity of Salviscount is £1.0 million (this compares with Helios’s 2016 capacity of £32.7 million prior to this acquisition).  Salviscount participates in a spread of Lloyd’s syndicates broadly similar to Helios’s own participation.


21st Century Technologies (C21.L) 2.75p £2.56m

The specialist provider of tailored solutions to the transport community, solving complex operational requirements both on and off vehicle, announced that it has been selected by a large Antipodean bus operator, to provide training, engineering services and equipment for an important fleet upgrade which includes CCTV & wireless video download systems. The agreement, denominated in Sterling, has a value of c. £1 million. The work is scheduled to complete during 2017.  There are no forecasts in the market.


OneView Group* (ONEV.L) 4p £14.07m

H1 Sep 16 results from one of the retail industry’s leading digital transformation software providers for in-store customer sales and service. Revenue of  $1.02m (H115: $4.0m). Loss before tax of  $2.4m (H115: loss of $0.4m). Cash and cash equivalents of $0.2m at period end ($0.2m at 30 September 2015) . Long lead times affected the results but the Company’s  confidence in achieving significant revenue growth in the next financial year and beyond remains undiminished.  Additional $1m convertible loan facility agreed with Lane Capital, owned by NED Gary Lane.


CyanConnode Holdings  (CYAN.L) 0.21p £32.98m

The specialist in narrowband RF networks for Omni Internet of Things  communications, announced a further purchase order from Larsen & Toubro to expand the deployment of CyanConnode’s smart metering solution at Tata Power Mumbai with an additional 4,700 smart meters. This third order is part of a larger framework that will enable Tata Power to ‘call off’ further deliveries quickly over the next 12 months, without going through a full procurement process.


Rex Bionics (RXB.L) 20p £5.1m

H1 Sep16 results from he pioneer of the REXTM Robot technology that enhances the mobility of wheelchair users. Pre tax loss of £2.64m vs £2.18m. Cash of £2.13m. Strong clinical data (post yr end) & collaboration with  US Army represent good progress. Cash runway extended to Q2 2017. Additional funding will continue to be required before the yr end, but  Board remains confident this will be forthcoming if progress achieved in the development of the business over the period can be maintained.  EIS qualification expected but not yet confirmed by HMRC.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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