Small Cap Feast

Small Cap Feast – 9th August 2016

Dish of the Day:

No Primary Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

LoopUp—The provider of conference calls and online meetings is seeking to join AIM. 2015 revs of £9.2m and EBITDA of £1.02m

Bacanora Lithium— To list on AIM as holding company for TSX listed Bacanora Minerals at £100m market cap

The Intertain Group Ltd – World’s largest online bingo-led operator (on TSX) intends to join Official List

Autins Group plc – The acoustic and thermal insulation specialist  looks to join AIM early August


Breakfast Buffet

OptiBiotix Health*(OPTI.L) 75.5p £58.9m

Great retail win announced by OptiBiotix today with its JV company’s GoFigure® meal replacement shakes and natural snack bars now available for sale in UK stores of the Whole Foods Market,  a large ($15bn turnover in 2015) American supermarket chain exclusively featuring healthy foods.  There are circa 9 stores in the  UK . We would hope that a good retail performance here could open the door stateside.  The products contain SlimBiome®, a patented weight management formulation.


Highland Gold Mining (HGM.L) 142.5p £463.4m

Q2 operating results.  Total Q2 2016 production of 71,782 oz of gold and gold equivalent at Mnogovershinnoye (MNV), Novoshirokinskoye (Novo) and Belaya Gora, up 12%.     Average realized gold price of 1,264 USD/oz over the reporting period.  Exploration work continued on the Northern ore body at MNV, with reserves expected to receive approval from regulators by year-end.  Work commenced on the planned expansion of processing capacity at the Novo mill.


Utilitywise (UTW.L) 126p £98.4m

The independent utility cost management consultancy, announces the appointment of Brendan Flattery as Chief Executive Officer, effective 1 October 2016. Brendan joins Utilitywise from The Sage Group plc (SGE.L), where, as President, Europe, he was responsible for leading a 7,000-person business unit operating across 11 countries which generated annual revenues of circa £800 million from a customer base of more than two million. Recent guidance for FY Jul 16. Rev > £82m. EBITDA > £17.8m.


Mkango Resources (MKA.L) 8c $5.3m

The explorer for rare earth elements and          associated minerals in the Republic of Malawi,  has announced the  results of the airborne geophysical survey covering approximately two thirds of its Phalombe licence. The Survey was part of a US$25 million World Bank funded nationwide airborne geophysical programme. The survey highlights a number of targets within  the licence area.


STM Group (STM.L) 32.5p £19.3m

The cross border financial services provider has provided a trading update. Following its decision to waive establishment  fees on its core QROPS pension product, July sales of the product saw a 28% increase over those of June, which was in turn a 15% increase over those of May. New business applications in July 2016 represent the highest month of applications over the last twelve months and a 75% uplift on the average number of applications received in the first four months of the year.  The FY2016E PE is 6.6x.


Aquatic Foods Group (AFG.L) 12p £13.6m

The Chinese marine foods and seafood processor and producer, supplying to export and local markets, has announced the appointment of Ms Po Ling Low as Finance Director. She has over 18 years of experience in the corporate finance, audit and investor relations sectors across the UK and Asia, and is a Chartered Certified Accountant. In 2008,  she became CFO of West China Cement Limited which had previously been listed on AIM before moving to a HK main board listing in 2010. 500k warrants awarded at 20-50p.


Motif Bio (MTFB.L) 63p £68.4m

The clinical stage biopharmaceutical company specialising in developing novel antibiotics, has announced that, as a result of market conditions, it has deferred pricing of its proposed public offering of American Depositary Shares (“ADSs”) and listing of ADSs on the NASDAQ Global Market; however, the Company intends to continue to engage with investors. The Company will provide an update to the market in due course.


Hargreaves Services (HSP.L) 193.25p £61.7m

Prelims to May 2016 from the company, specialised in sourcing, producing, processing, handling and transporting carbon-based and other bulk materials throughout the UK and Europe.  Operations have been greatly scaled back.   Underlying Operating Profit of £4.6m  vs £42.8m. There are £60m of legacy assets that Hargreaves aims to convert to cash.


GLI Finance (GLIF.L) 27.13p £77.2m

The investor  in the SME Alternative Finance sector  has announced a £7.1m underwritten placing at 31p, a 14.3% premium to yesterday’s close. The company has amended its dividend policy abandoning the 2.5p annualised minimum after the 2016 financial year. GLI continually reviews the returns earned from its investments, and in future may source further cash resources through the sale of more liquid assets which may not be providing adequate returns.


Faroe Petroleum (FPM.L) 67.5p £80.45m

The independent oil and gas company focusing principally on exploration, appraisal, development and production opportunities in Norway and the UK, announced on 21 July 2016 the proposal to issue 5,958,896 Open Offer Shares at an issue price of 70 pence.  As announced today, there has been a 13.7% take up of the underwritten offer which follows a recent £62m over subscribed placing.


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Emily Liu, CFA, CAIA
0203 764 2344

Sous Chef:

Sacha Morris
0203 764 2345

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