Small Cap Feast

Small Cap Feast – 8th November 2016

Dish of the Day:

No AIM Joiners Today

Off the Menu:

Impact Holdings has delisted from AIM

What’s Cooking in the IPO Kitchen?

Diversified Gas & Oil—The US based gas and oil producer is seeking a December AIM listing to raise circa $60m

FreeAgent—Schedule one now out from the provider of accounting software to small businesses. Date and quantum of raise still to be disclosed.

Civitas Social Housing –Intention to float on Main Market from the first REIT to be listed on the London Stock Exchange offering pure play exposure to social housing


Breakfast Buffet

Venn Life Sciences* (VENN.L) 23.38p £14.08m

The growing Contract Research Organisation providing drug development, clinical trial management and resourcing solutions to pharmaceutical, biotechnology and medical device clients, has signed a new contract worth 2.5m with Sedana Medical AB.  Venn will carry out a randomised, controlled, open label Phase III study to confirm efficacy and safety of sedation with isoflurane in ventilated ICU patients. This trial is confined to patients in Germany and commences immediately. The shares are on 7.8x  our FYDecE earnings.


Fitbug Holdings* (FITB.L) 0.22p £23.65m

The technology developer and digital wellness pioneer  announced that Heidi Steiger,  has joined the Board as a Non-Executive Director with immediate effect and that Richard Goodlad has joined the board as full time Finance Director.  Most recently Heidi was Eastern Region President of the Private Client Reserve of US Bank, the 5th largest commercial bank in the US. Prior to joining Fitbug Richard had been CFO of Servebase Group & then COO of Miura Systems, which he built from a virtual start-up, into a major global supplier with turnover exceeding $33m in two years.


Concepta (CPT.L) 17.75p £19.46m

The UK healthcare company targeting the personalised mobile health market with a primary focus on women’s fertility, has signed a 10 year lease for its new manufacturing facility in Doncaster, Yorkshire. The addition of this new facility will provide the Company with the necessary capacity and economies of scale as it pushes ahead with the launch of its MyLotus product for unexplained infertility into China in Q4 2016 and, following CE marking, into the UK and Europe in 2017. FY2017E revenues of £2.7m and a £1.74m pre-tax loss.


First Derivatives (FDP.L) 2,004p £495m

First Derivatives has announced its entry into the retail analytics market, using its Kx technology as a platform to develop solutions under a team of leading retail technology specialists recently recruited by the Group. The move opens up an addressable opportunity which, according to MarketsandMarkets, is expected to grow at 19% per annum to be valued at more than $5 billion per annum in 2020. FYFeb17E £140m revs and £17.87m PBT. 37.1xPE and 0.9% yield.


San Leon Energy (SLE.L) 41.75p £184.96m

Avobone and San Leon Energy have settled a number of ongoing disputes in respect of various matters including a final award in an ICC arbitration dated 21 May 2015. The total settlement of 23.3 million plus interest to be paid to Avobone by San Leon will be paid in instalment to complete by the end of 2017. The provision made in the 2015 audited accounts for the Avobone dispute was approximately €20.6 million.  The difference is due to interest, exchange rate fluctuations, and further legal costs. SLE still expects to distribute 50% of free cash flow from OML18.


Telit Communications (TCM.L) 249.75p £288.84m

FYDec16 trading update from the enabler of the Internet of Things. The Group has increased its adjusted EBITDA and earnings per share guidance towards the middle and upper end of the previous range, as a result of better gross margin and operational cost discipline. The Group has also narrowed the revenue guidance range.  Guidance: Revenue $360-$375m, Adjusted EBITDA $54-59m. EPS 26-30c.


Grafenia (GRA.L) 8.75p £3.97m

H1Sep16 results from the provider of systems to the graphic arts industry. Revenue down 2.65% to £5.14m with higher volumes and lower pricing. EBITDA was £0.46m (2015: £0.59m), a decline of 22.03%. There was an operating loss of £0.42m(2015: operating loss £0.18m).  Cash up to £0.5m from £0.34m. Remains cautious for H2. If transactional print revenues continue to perform below internal budgets, it is likely that full year results will be significantly below market expectations.


Paysafe Group (PAYS.L) 430.2p £2.1bn

Trading update from  global provider of payment solutions.  Further to the update on trading given at the Group’s Half-Year results in August, Paysafe continues to perform in line with previously upgraded management expectations. The Group’s expectations for revenue and adjusted EBITDA remain unchanged, with revenue in the range of $970m – $990m and an adjusted EBITDA range of $287m – $293m, based on an adjusted EBITDA margin of 29.6%.  13.7x FYDec16E PE.


Tyman (TYMN.L) 264p £470m

Trading update for the period from 30 June 2016 to date from the international supplier of engineered components to the door and window industry. 2016 Trading  remains in line. Encouraging growth has continued in European markets and volumes have held up in UK and Irish markets, offsetting slower trading in North America since the half year.  Broad international exposure and balanced portfolio means Tyman is well positioned for 2017 and beyond, despite macroeconomic uncertainties and continued currency volatility.  FYDec16E rev £445.7m.  21.52EPS


Savannah resources (SAV.L) 4.37p £19.66m

Initial resource estimation over two of the four deposits currently defined at the Mutamba project in Mozambique. 10% stake with earn in up to 51% under Rio Tinto Consortium.  Initial Indicated and Inferred Mineral Resource Estimate of 3.5bn tonnes at 3.8% Total Heavy Minerals. Mineral Resource Estimate contains 81 million tonnes (“Mt”) of ilmenite, 2.2Mt rutile and 3.8Mt zircon. 52% Indicated and 48% Inferred. Resource estimation in respect of the Ravene and Chilubane deposits still to be completed.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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