Small Cap Feast

Small Cap Feast – 9th January 2017

Dish of the Day:

No AIM Joiners Today

Off the Menu:

Cancellation of African Potash

What’s Cooking in the IPO Kitchen?

Breakfast Buffet

Arian Silver Corp (AGQ.L) 0.63p £1.15m

High-grade silver results from the recently completed surface sampling and geological mapping of its wholly-owned San Celso project located in central Zacatecas State, Mexico.  These results demonstrate that San Celso contains several largely unexploited high-grade veins and include promising lead and zinc grades. Highest silver grade is 395.9 g/t over a true width of 1.05m.

Eco Animal Health (EAH.L) 500p £321.14m

Subsidiary ECO Animal Health de México has received marketing authorisation from the Secretariat of Agriculture, Livestock, Rural Development, Fisheries and Food  of the Government of Mexico for the use of Aivlosin® 625 mg/g water soluble granules in chickens laying eggs for human consumption.  This approval, the first in Latin America, will allow ECO to start selling Aivlosin® in Mexico for the medication of drinking water for the treatment of infections caused by Mycoplasma in poultry laying eggs for human consumption with a zero day drug withdrawal period for eggs. Aivlosin®, ECO’s patented antimicrobial, is used under veterinary prescription for the treatment of a variety of economically important respiratory and enteric (gut) diseases in poultry and pigs.


Panmure Gordon & Co(PMR.L) 76.5p £11.9m

Trading update from  independent institutional stockbroker and investment bank for FY Dec 2016.  Trading  has been in line with the Board’s expectations, with revenues for the second half of the year ahead of the previously reported six months.  Net revenue for the full year is expected to be approximately £27 million versus £23 million in 2015. This will result in a return to full year profitability and positive operational cash flow with the net effect of further strengthening the Group’s balance sheet.  “Notwithstanding an uncertain market with continued political and economic uncertainty, we look forward to 2017 with measured confidence.”


EKF Diagnostics Holdings (EKF.L) 16.9p £78.34m

FYDec16 trading update from  point-of-care business.  Trading in the final quarter of the year ended 31 December 2016 was materially better than budget and that the overall performance for the year will exceed revised market forecasts, recently upgraded following the trading update provided on 7 November 2016. Revenues in excess of £38m (compared to previous guidance of “at least £36.5m”) for the year and adjusted EBITDA comfortably exceeded £5.5m (compared to previous guidance of “at least £5.5m”). The strong performance during the final quarter is entirely due to organic growth.


Keras Resources (KRS.L) 0.5p £7.74m

The Australian focused gold mining company, announced that drilling has confirmed historic intercepts at its 100% owned, flagship Klondyke Gold Project in the East Pilbara District of Western Australia.  This follows the receipt of assay results for the remaining six holes of the reverse circulation drilling programme completed in November 2016, which returned high-grade gold intersections. Five holes were drilled within the defined JORC compliant mineral resource estimate, of 5.6Mt at 2.08g/t gold for 374,000oz, along the Klondyke trend, over a strike length of approximately 1.4km.  The Company believes the results suggest significant further upside potential. 


Restore PLC (RST.L) 380p £425.8m

Acquisition of the business and certain assets of Reisswolf Wales, Border Counties & Merseyside, the secure shredding division of Parry & Evans Limited, a fibre-based waste recycling business based in Welshpool, Wales.  Reisswolf Wales was founded in 2002.  For the 12 months ending 31 May 2016, it generated revenues of £0.5 million.  The acquisition was funded from Restore’s existing bank facilities. (BOO.L) 140.75p £1.6bn

Further to the announcement of 28 December of the asset purchase to acquire  certain intellectual property assets and customer databases from retailer Nasty Gal Inc. for US$20 million, The Group confirms that the US Bankruptcy Court has approved the process for the sale of the Nasty Gal assets. As previously announced, the proposed transaction will be governed by a court approved bidding process. The closing date for bids will be 2 February 2017. The Group’s bid may not result in a transaction if higher or more favourable offers are obtained by Nasty Gal during the auction process.


Premier Technical Services Group (PTSG.L) 85p £75.1m

“PTSG, the niche specialist services provider, is pleased to announce that its results for the year ended 31 December 2016 are anticipated to be in line with the Board’s expectations.”

FY16E rev £36.7m, PBT £7.5m, ES 6.8p, 1.4p div.


Space and People (SAL.L) 22p £4.3m

The retail, promotional and brand experience specialist, issued a FYDec16 update, Trading during the key month of December was poorer than expected. Revenues for the year from the promotional divisions and the German retail division were in line with management expectations, however, Retail Merchandising Unit sales were significantly lower than had been anticipated with demand over the normally lucrative Christmas period being particularly weak.  Revenue for the year was £700k lower than expected at £10.2m and the impact of this on the profitability of the Group is a reduction of approximately £425k from market expectations.


Nektan (NKTN.L) 28.5p £6.87m

The international B2B gaming solutions and services provider, provides an update on trading for the three months ended 31 December 2016 (Q2). Net gaming revenue of £3.1m up 260% on Q2 2016 and up 71% on Q1. Further update on proposed equity funding. The Company has received commitments to raise £2.275 million gross from new and existing shareholders including certain directors.  The Subscription is subject to the passing of the resolutions at the Company’s Annual General Meeting on 27 January 2017.


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