Small Cap Feast

Small Cap Feast – 8th February 2017

Dish of the Day:

Eco (Atlantic) Oil & Gas  has  joined AIM (ECO.L).  It is dual quoted on the TSX. Raised £5.09m at 16p to enhance its seismic exploration programme on its 1,800km Orinduik Block in Guyana

Off the Menu:

No AIM Leavers Today

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

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

Keywords Studios (KWS.L) 612p £329m

FY Dec16 trading update from the international technical services provider to the global video games industry. Preliminary unaudited revenues for the year of 96.6m and adjusted PBT of 14.8m, both of which are comfortably ahead of consensus market expectations. This performance has been driven by strong like-for-like growth, due to the continued growth of the established business as well as the contribution of the eight acquisitions completed during the year.  Following these acquisitions, the Group had €17m in cash at the year end and had utilised €8m of its €15m rolling credit facility.   32.2x PE for FY16E falling to 26.9x for FY17E.

Elektron Technology (EKT.L) 8.12p £15.12m

FYJan17 trading update from  the global technology group. Group revenue from continuing operations of approximately £34.5m (unaudited) compared with £35.5m (on a LFL basis) for the previous year. Trading in H2 on continuing operations showed some recovery from the slowdown in the first half.  Underlying trading performance from continuing operations benefitted from the improved mix of sales and further cost savings to offset the impact of the overall fall of £1m in sales when compared to the previous financial year. Continues to be cautious in its outlook due to macro-economic conditions and continued sales order visibility of 5-7 weeks.  Net cash of £1m benefitting from non-core disposals. More to come. Investing in product development. There are no forecasts in the market.


DP Poland (DPP.L) 56.75p £77.9m

The exclusive operator of the Domino’s Pizza sub franchise in Poland has updated on store performance. Like-for-like system sales up 27%. Total system sales up 62%. 16 new stores opened and 10 more towns came on stream in the last 13 months. Investment in accelerated roll-out.   4 new stores opened in 4 more towns since 1 January 2017. 71% delivery sales online.

“This step change in store roll-out and system sales growth is set to continue through 2017 as we invest in real estate development, store operations, dough production capacity and food warehousing.

The Company continues to trade in line with management expectations and will release its full year results for 2016 on 27 March 2017.” FY16E rev of £6m and £2.1m pre-tax loss.


Range Resources (RRL.L) 0.36p £27.34m

The exploration and production Company  confirmed that following Shareholder approval at the General Meeting of the Company held on 7 February 2017, all the conditions for the US$20 million convertible note financing have been met.

The issue of the convertible note is to replace a portion of the outstanding payable balance due to LandOcean Energy Services Co., Ltd. (“LandOcean”) under the terms of the Integrated Master Services Agreement. At the date of entering into the Convertible Note Agreement (31 October 2016), the outstanding payable balance due to LandOcean was US$35.9 million.


Dillistone Group (DSG.L) 98p £19.27m

The supplier of software for the international recruitment industry through its Dillistone Systems and Voyager Software divisions,  provided a trading update  for FYDec16. Pre-tax profits before acquisition related items and one off adjustments are expected to be broadly in line with market expectations, with year on year growth in revenue, EBITDA and pre-tax profits.  Currency gains have impacted both our revenues and costs, however the net impact of this currency fluctuation has been positive. Lower sales to existing clients offset by new business.  Mindful of 2017 macro outlook but remains optimistic. FY16E rev of £9.8m  and £1.5m PBT. Div 4.19p.


Aura Energy (AURA.L) 2.3p £16.55m

Aura to commence exploration drilling program on its Tasiast south gold project. Key shareholders have elected early exercise of options (at 2.5c) to provide $1.84m funding for the drilling program. These highly prospective tenements, covering 175km2, lie along strike from Kinross’ giant +20 million ounce Tasiast Gold Mine and Algold’s Tijirit gold tenements which have recently returned exceptional drilling results.  The two areas are currently held under exploration permit applications and are expected to be granted soon.


BLUR Group (BLUR.L) 7.37p £3.47m

The Indirect Spend Management Platform, released key metrics for Q4 2016, a period that saw the first subscription to blur’s subscription based Group buyer plan together with further improvements to EBITDA, operating costs and cash burn. FY 2016 EBITDA is expected to be ahead of expectations. Fifth consecutive quarter of improved underlying cash burn – down by 10% to $0.9 (excluding R&D tax credit and foreign exchange movements).  FY 2016 EBITDA expected to be ahead of expectations. FYDec16E rev of £0.79m at £3.98m loss.


Flowgroup (FLOW.L) 6.13p £19.45m

The provider of a range of innovative energy technologies, energy supply and energy services, expects to announce its results for the year ending 31 December 2016 during May 2017.  The Company expects its trading results to be in line with analysts’ forecasts. The Group had headline cash of £9.2m on 31 December 2016 of which £3.4m in energy trading accounts. Progress made in Energy and Smart boiler divisions. On MicroCHP given feed in tariff changes, and recognising the challenges that remain in the UK domestic market, the strategy has been refocused for a full entry into the European market as soon as practicable.  FYDec16E rev £99.2m and £24.89m pre-tax loss. 


Totally (TLY.L) 56.5p £11.3m

FYDec16 trading update from  the provider of a range of out-of-hospital services to the healthcare sector in the UK. Based on unaudited management accounts Group revenues are expected to be no less than £3.7m.  Having made three acquisitions in the healthcare services sector in 2016 worth a total maximum consideration of up to £15.1m, and secured new and renewed contracts with a value in excess of £1.7m per annum in revenues, the Board believes that Totally is making strides in its goal of being the leading provider of out of hospital care in the UK.  Positive start to 2017 with its five subsidiary businesses continuing to secure new business and renew existing contracts with both the NHS England and private sector organisations.


Kodal Minerals (KOD.L) 0.45p £23.36m

Final assay results for all drill holes from the first reverse circulation drilling programme at the Bougouni Lithium Project, Southern Mali. Continues to return wide, high-grade intersections and all holes drilled at the prospect have returned lithium mineralisation: Includes 28m at 1.85% Li2O from 72m in drill hole KLRC002. Mineralisation remains open at depth with all drilling to date targeting near surface mineralisation. Follow-up drilling planned for Ngoualana to target the strike extensions, test depth continuity and define the high grade mineralised zones.


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Derren Nathan
0203 764 2344

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