Small Cap Feast

Small Cap Feast – 7th February 2017

Dish of the Day:

No AIM Joiners Today

Off the Menu:

Shares in Servicepower Technologies  have been cancelled following an takeover.

What’s Cooking in the IPO Kitchen?

Arix Bioscience — Intention to float on the main market from the  global healthcare and life science Company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management

Eco (Atlantic) Oil & Gas—Schedule One Update. Now expects admission ‘early February’.

Ramsdens Holdings –Schedule One from the financial services provider and retailer, operating in the core business segments of foreign currency exchange, pawnbroking loans, precious metals buying and selling and retailing of second hand and new jewellery. Expected admission to AIM 15 Feb raising circa £15.6m. Expected mkt cap £26.5m.

 

Breakfast Buffet

XLMedia (XLM.L) 102.5p £205.36m

The provider of digital performance marketing,  announced the acquisition of ClicksMob Inc, a mobile performance marketing platform, for a total consideration of $5.1 million, payable in cash. The acquisition is expected to complete during the first quarter of 2017 and is expected to be earnings accretive in the current financial year.  ClicksMob generated unaudited revenues of $16.3 million and profit before tax (excluding share based payments) of $0.3 million for year ended 31 December 2016.   The addition of ClicksMob will provide the Group with significant presence in Asia, with over 30% of ClicksMob 2016 revenues generated from the region. FYDec16E £82.76m and PBT of £24.16m. PE 10.9x, yield 4.9%.

 

DX Group (DX..L) 18.5p £37.1m

The independent parcels, mail and logistics operator, provided an update on current trading for FYJun17. Challenging  conditions referred to in the update on 22 November 2016 are continuing, including pressure on pricing. The business has also continued to experience margin erosion from the ongoing change in revenue mix.  While there has been strong momentum and wins in the Logistics business, the expected growth in higher margin revenue from the DX Courier and Freight activities has not come through, impacting profitability due to the fixed cost nature of this network. FY profits expected to be below market forecasts and no dividends to be paid in the foreseeable future.  Commenced wide-ranging review of operations with a view to driving revenues and improving  financial performance.

 

Oxford Metrics (OMG.L) 46.5p £57.2m

The international software Company servicing government, life sciences, entertainment and engineering markets, announced Yotta, a provider of cloud-based infrastructure asset management software and services, has launched a new connected asset management platform, Alloy. The launch of Alloy is a positive step to deliver on the stated strategy for Yotta, to expand the business internationally and to broaden the capability of Yotta’s software in order to solve more problems for customers in more integrated ways.  FYSep17 £31.46m rev and £3.53m PBT, Div 1.1p.

 

Be Heard (BHRD.L) 3.77p £26.97m

The digital marketing services group, announced the proposed acquisition of a 75% stake in Freemavens Limited, a marketing analytics and innovation consultancy specialising in the use of big data, for a total consideration of around £1.7m. The acquisition and associated costs are being funded via a cash placing to raise gross proceeds of £2.1m. Founded in 2012 by Andrej Moyseowicz and Christopher Palengat, Freemavens is an analytics and innovation consultancy which aims to solve clients’ business challenges and develop insights and actionable ideas using big data. Clients include Unilever, Barclays, Channel 4 and RNLI.  For the FY Dec 2016 Freemavens delivered £1.72m gross revenue and £0.41m adjusted EBITDA.

 

ENTU (ENTU.L) 25.5p £25.5m

Further to the announcement of 28 Oct 2016, Entu confirms that its current EBITDA expectation, from continuing operations and before exceptional items, is expected to be within the range previously announced, at approximately £2.6 – 2.7m. In addition, exceptional costs relating to the planned cost-saving processes in FY 2016 are expected to be approximately £1.9m in line with previous expectations. Net cash at the year-end was £0.8m. No dividend to be declared. Exceptionals of £6.8m many of which are non-cash.  Q1 trading in-line. Entu is a multi-product and service home improvement group providing energy efficiency products and services to homeowners in the UK.

 

Amino Technologies (AMO.L) 182p £130.2m

FYNov16 results from the global provider of digital TV entertainment and cloud solutions to network operators. Revenue +80% to £75.2m, EPS up 59% to 13.64p, div up 10% to 6.05p, net cash of £6.2m +195%.  Underlying organic revenue growth of 7%, which is 2% ahead of management’s initial expectations of 5%. Amino enters 2017 with a strong order book and sales pipeline providing good visibility of revenue and profits for the first half. The Board expects the positive momentum gained in 2016 to continue and result in sustainable profitable growth in 2017.

 

Regency Mines (RGM.L) 0.55p £2.24m

Regency notes an announcement made today by UK Oil and Gas Investments plc relating to Horse Hill Development Limited and the Horse Hill oil discovery in block PEDL137 (3.25% working interest) of the Weald Basin in the southern UK. The announcement concerns an upgrade of the Portland Sandstone oil in place at Horse Hill and the initial reporting of contingent resources at that level. “The path to production remains subject to regulatory delay, and we must never forget that this project is in the densely populated south of England where new projects are quite properly subject to long scrutiny before being approved, but the probabilities of a production decision continue to increase.”

 

Walker Greenbank (WGB.L) 202.5p £141m

FYJan17 update from the luxury interior furnishings group. The results for the year are expected to be in line with the Board’s expectations and will include a first-time contribution from Clarke & Clarke, which was acquired by the Company at the end of October 2016. Profit before tax will include received and anticipated insurance payments of £15.3m relating to the flood in December 2015 at Standfast & Barracks, the Company’s fabric-printing business. Group sales for the year, which reflect the impact of the flood, are expected to be £92.4 million (2016: £87.8 million), including sales of £7.3 million from the first 18 weeks of ownership of Clarke  & Clarke.

 

ASA Resource Group (ASA.L) 1.72p £29.2m

Asa Resource announced that Freda Rebecca Gold Mine, in which the Group has an 85% interest, has received export incentive credits and a Top Producer award. The Reserve Bank of Zimbabwe introduced a 2.5% export incentive scheme to large mining exporters effective 1st May 2016. Freda Rebecca earned US$1.3m in export incentive cash credits for the period to December 2016. Freda Rebecca has also won the inaugural Best large Scale Top Producer award, which attracts an additional 2.5% export incentive bonus credits for the period January to December 2017. Freda Rebecca therefore will have a total export incentive in the next 12 months of 5%, which translates to more than $4.5 million in cash rebates.

 

Hornby (HRN.L) 31.25p £26.43m

The international hobby products group, provided an update on progress made in its turnaround plan and trading for the period from 25 November 2016 to 5 February 2017. Transfer of European operations to UK at advanced stage. Product range rationalisation complete.  At 31 December 2016 stocks were £11.2m (2015: £15.5m) and net debt was £2.7m (2015: £6.4m). “As previously announced, revenue is expected to decline by around 20-25% this financial year due to the rationalisation of the business. Group revenue reduced by 25% year on year during the Christmas period and UK revenue was down by 21%, in line with expectations. Underlying Christmas trading was healthy and we have enjoyed a solid January sales period.”

 

Head Chef:

Derren Nathan
0203 764 2344
derren.nathan@hybridan.com

*A corporate client of Hybridan LLP

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