Small Cap Feast

Small Cap Feast – 9th February 2017

Dish of the Day:

No AIM Joiners Today

Off the Menu:

No AIM Leavers Today

What’s Cooking in the IPO Kitchen?

GBGI—Schedule One from the integrated provider of international benefits insurance focused on providing tailored insurance products. Looking to raise £32m with admission expected 22 Feb.

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

InnovaDerma* (IDP.L) 147.5p £17.47m

Strong growth in today’s HYDec16 interims. Revenue up 125.5% to £3.187m. Gross profit increased significantly by 131% to £1.837m. Underlying trading profit of £0.129m against a comparable period of £0.009m before one-off costs of £287k associated with strategic activity initiatives and corporate activity. Very strong start to H2 with January 2017 delivering the highest ever monthly sales in what is considered to be the slowest month in the self-tanning industry. Opening order for the Professional Salon Range of Skinny Tan in the US through Artisan Tan was achieved in January. New range focused on Mass Market to be launched in 2017 as well as new haircare products. Revenue and profit growth expected in H2. FYJun17E rev of £6.95m and £0.7m PBT.


Proteome Sciences (PRM.L) 4.9p £14.4m

FYDec16 trading update from the  specialist in in applied proteomics. “After a strong first half, progress continued throughout the rest of the year with results in line with expectations. Buoyed by robust sales of our TMT® reagents and the associated royalties, unaudited revenues during the full year increased by 46% to approximately £2.74m (2015: £1.88m). Costs and margins were as expected and the Company recorded a loss after tax of approximately £2.30m compared with £2.72m in 2015.“Laboratory consolidation to complete in H1 and relocating head office. Material cost savings from 2018 onwards. Richard Dennis appointed chief commercial officer formerly of Quanterix and Bioscale.


Northbridge Industrial Services (NBI.L) 122.5p £32.5m

FY Dec 16 trading update. ‘Recent trading has been consistent with our internal forecasts and, consequently, the Group expects the result for 2016 to be broadly in line with management’s expectations.’  Has been impacted by slowdown in oil and gas industry which it services. Cautiously optimistic on a revival in exploration and production following Opec quota and subsequent price rise in oil.  FY2016E £23.6m rev and £3.8m Pre-tax loss. FY2017E £26m rev and £1..1m Pre-tax loss.


Water Intelligence (WATR.L) 133p £15.96m

FYDec16 trading update from provider of precision, minimally-invasive leak detection and remediation solutions. The Company’s strong financial performance referred to in the Q3 Trading Update on 21 December 2016, continued for the remainder of 2016.  Revenue growth exceeded market expectations within all sales channels, including newly acquired UK-based NRW Utilities, with total revenues for the year of $12.2m. (2015: $8.8m) with adjusted profit before tax in-line with market expectations. The Company incurred upfront investment costs that will drive future profitability, as well as significant one-time costs. Margins are expected to grow during 2017 with a full year of trading from the 2016 acquisitions, together with continued organic growth.


CyanConnode Holdings (CYAN.L) 0.21p £33.58m

The specialist in narrowband radio mesh networks, announced the receipt of a purchase order from a specialist in energy management systems for a smart metering contract in Bangladesh, South Asia.  This is the Company’s first order for a utility customer in Bangladesh and is a further demonstration of the Company’s growing geographical sales footprint. The $5.4 million purchase order is for the supply of CyanConnode’s Advanced Metering Infrastructure solution for a 150,000 unit smart metering deployment.   There are no forecasts in the market.


Faron Pharma (FARN.L) 350p £92.1m

Update from the clinical stage biopharmaceutical Company. At the end of 2016, Faron had approximately 11.5 million in cash. 2017 targets include:  read-out for the pan-European phase III trial (INTEREST) results (all-cause mortality at day 28) during H2 2017; Subject to a positive outcome of the INTEREST study, having manufacturing in place should facilitate the application process for market approval of Traumakine®; The Company plans to commence a Phase II US safety study (INTRUST) with Traumakine® in H2 2017Pre-IND expected in Q3;  The Company expects to file the first clinical trial application (CTA) with the UK regulatory authorities (MHRA) in late 2017 / early 2018.


SCISYS (SSY.L) 108p £31.34m

The supplier of bespoke software systems, IT-based solutions and support services to the media, broadcast, space, government, defence and commercial sectors, has  signed a contract for up to 1.9m with  GMV, a technological business group with an international presence, for the design and implementation of a mission control system to support the EUMETSAT Polar System earth-observation programme. This relates to the 2nd generation of polar-orbiting satellites that will provide weather-prediction data for national meteorological services during the 2020’s & 2030’s. Commencing in 2017, the contract is expected to be delivered by 2021 underpinning current market guidance.


NetScientific (NSCI.L) 60p £30.65m

The transatlantic healthcare IP commercialisation Group, reported that the Chief Scientific Officer of its portfolio company, Vortex Biosciences, Elodie Sollier, has been selected as a finalist for a 2017 SLAS Innovation Award. Elodie, who is one of nine finalists, gave a presentation to the judges on Monday 6 February: “Vortex Technology for fast and label-free isolation of circulating tumour cells from blood samples” where she discussed a breakthrough by Vortex in the isolation of circulating tumour cells from blood samples.  Her presentation will be considered by the judges in determining the winner of the award.


Wishbone Gold (WSBN.L) 0.75p £8.5m

Trading update. The precious metals trading Company entered into a debt facility in June 2016 to support its gold trading, with shipments commencing in August 2016. Peak trading was in December 2016 with 105 kilos committed and sold during the month. The Company achieved its target of exceeding 25 kilos per week by the year end. Margins have been under pressure due to India’s change in import rules which provides a premium for gold shipped to, and processed in, certain economic zones.   ‘The gold market remains extremely strong in volume terms which makes us believe that the oft quoted decline in production is failing to monitor the small producers which is our target supplier market.’


Asiamet Resources (ARS.L) 4.1p £29.1m

Resource evaluation drilling as part of feasibility studies on the Beruang Kanan Main (“BKM”) copper deposit in Central Kalimantan, Indonesia continues to confirm excellent continuity of high grade copper mineralisation in the BK044 Zone.  10 holes reported today with 48 to go. Results include BKM32550-08    4.35 meters at 4.93% Cu (from 3.00 meters) including 2.0 meters at 8.97% Cu (from 4.0 meters) and 26.85 meters at 2.34% Cu (from 34.15 meters). Feasibility study activities are being progressed at pace on all fronts and several corporate initiatives aimed at further strengthening the Company and providing funding options for the development of BKM have been significantly advanced.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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