Small Cap Wrap: Month: March 2012

AIM Breakfast - Archive

20 March 2012

This week: ANGLE moves another degree, a key step for Milestone and new energy for Energetix.

Fewer volatilities in the financial markets last week with the FTSE 100 increasing by 75 points to 5,961 and the AIM All Share staying broadly flat at just over 800 points. This week, the UK announced a fall in the rate of inflation to 3.4 per cent in February down from 3.6 per cent in January, whilst in the US new home building data dipped by 1.1 per cent between January and February and China announced a 6 per cent increase in the price of petrol. The week ahead see the Budget, public finances data, MPC minutes and retail sales data all being announced in the UK.

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Disclaimer- This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only- please refer to the disclaimer in full below.

ABH Proposed Placing, AGL Validation for colon cancer, EDE New agreement, ENEG Strategic Partnership, EGX Unit Verification, EHP Interim results, FFA New partnering, FITB success in France and Germany, FIP Funding raised by Diurnal, HCM final results, IOM Trading Update, ITM New supply and distribution agreement, MSG raises equity, NPT Capital Reduction, NTOG Bale Creek, PLE PSD502 regulatory submission update, PGRP New contract wins, SOG Preliminary results, SUN FDA approval for product, SYM Preliminary results, TRS Acquisition of Turkish Exhibition Company, VPHA Full year results and ZCGP Trading Update.

Angel Biotechnology (LON: ABH 0.22p/£7.28m)*
Angel is seeking to raise a £1m through a placing of shares at the same price as the placing that was announced on 22 December 2011 as one of the institutional investors was not in a position to invest at the time of the December 2011 placing and other institutional investors who supported the December 2011 placing have asked to provide follow-on investments. Angel is very well capitalised to take advantage of the opportunities that are presented to it.

Angle (LON: AGL 52.75p/£19.95m)
ANGLE, the technology commercialisation company, has reported that it has achieved another key milestone by confirming that its Parsortix cell separation device can capture colon cancer cells. The ability to capture colon cancer cells creates the possibility of developing an effective, non-invasive screening technique to enable the early diagnosis and monitoring of colorectal cancer. ANGLE has previously demonstrated that its Parsortix separation technology can capture cultured breast cancer, prostate cancer and lung cancer cells added to blood (spiked blood). This new validation is a further important step towards demonstrating that the Parsortix separation technology can capture any solid tumour cancers without the need for modification or dependence on cancer specific antibodies, unlike existing antibody affinity based technology.

Eden Research (LON: EDE 21.50p/£21.4m)
The agrochemical and encapsulation company announced an agreement with Phytalexin Limited, under which Phytalexin has exclusive rights to Eden’s formulations and encapsulation technologies primarily for use as a head-lice product. Phytalexin is the Company that developed the technology behind the very successful Hedrin range of head-lice treatments, which has gained 40 per cent of the UK market and is now gaining share in most European markets, South America and Australia. This is a good update for the Company showing further validation of Eden’s encapsulation technology.

Enegi Oil (LON: ENEG 20p/£21.23m)
Further to the release dated 20 September 2011, Enegi announced that it has entered into a strategic partnership with Advanced Buoy Technology (ABT) to apply for offshore assets in the UK North Sea. ABT has access to buoy technology and industry expertise that enables the economic development of proven offshore oil and gas assets classified as marginal or sub-economic under conventional development methods. In particular, ABT has a strategic partnership with Wood Group PSN, the international energy services company, to commercialise and ensure deliverability of unmanned buoy technology. Under the strategic partnership, Enegi and ABT will each contribute 50 per cent of the costs incurred by participating in the Licensing Round in return for an equal stake in any licences awarded. Only in the event that ABT’s buoy technology is used, will Enegi pay ABT a gross royalty of 2.5 per cent from revenue generated. International energy consultants, Wood Mackenzie, estimate that there are 287 discovered fields in the UK North Sea, containing approximately 2.2 billion bbls of oil and 9 tcf of gas, that are considered non-commercial. This suggests there are potential multi-billion pound reserves in the UK North Sea that remains to be unlocked. Preliminary analysis conducted by ABT and Enegi has identified 58 discovered fields, in unlicensed acreage in the UK North Sea with a combined resource of approximately 850m bbls of oil and 685 bcf of gas, which are technically suitable for development using buoy technology. These fields will be screened further, taking into account geological risk and capital requirements, to determine the most commercially attractive licences to apply for in the Licensing Round.

Energetix Group (LON: EGX 26.75p/£17.43m)
Energetix Group, which develops and commercialises alternative and efficient energy products, announced that its subsidiary Energetix Genlec has received Unit Verification from the British Standards Institution for the first of its Kingston microCHP Delta production engineered units. Unit Verification is an important step towards Batch Verification for the targeted batch of 45 units to be installed and tested as part of the forthcoming trial of the new Kingston boiler which will be the centre piece of a new dual fuel Energy Supply Company, called Kingston Energy. As previously announced the Group has agreed to work with Calor Gas on a liquefied petroleum gas version and with Carillion Energy Services Limited on the installation and testing of the Kingston Boiler. Energetix also announced on 5 March 2012 that it had entered into an agreement with ScottishPower to trial the Kingston microCHP boiler.

Epistem (LON: EHP 422.5p/£37.37m)
Epistem, the biotechnology and personalised medicine company, has announced a three per cent year-on-year increase in revenues for the six months to December 2011 to £3.1m. The Company saw the strongest growth in the Personalised Medicine (Biomarkers and Diagnostics) division, where it now has a biomarkers collaboration with Sanofi-Aventis and GSK. The company has increased investment in diagnostics (Genedrive™) and recently announced Xcelris Labs as its first sales and marketing ‘channel partner’. Following the fundraise of £2.8m net in November last year; the Company ended the first half with a cash position of £5.3m.

FFastFill (LON: FFA 11.88p/£56.05m)
FFastfill, the software and services provider to the global financial community, announced a partnering deal with New York Portfolio Clearing LLC (NYPC) to provide technology, hosting and support for the Company’s NYPC PRIME Portfolio Risk Interactive Margin Estimator. FFastFill will help to deliver the NYPC VAR (Value-at-Risk) calculator for margin savings which clearing members will be able to achieve for proprietary interest rate futures cleared at NYPC. This follows on from news last week of a new contract win for the supply of its trade execution and management suite, Trading Pro, to be deployed within R.J. O’Brien & Associates (RJO) operations in Europe and the US.

Fitbug Holdings (LON: FITB 1.62p/£2.60m)
The AIM traded provider of online personal health and well-being services announced that in line with its European expansion strategy, it has achieved solid growth in France and launched its activity tracking device into the German market. In France, diet club partner Anxa has placed orders for 3,000 of its members so far this year and confirmed a minimum forecast of 6,000 for the year. Fitbug Chief Executive Paul Landau said, “We are naturally pleased to see the entry of our product into the German market and these two growing relationships demonstrate the market potential and strengthening interest in the proven capability of Fitbug’s services….As well as targeting growth in the US market, which has a strong understanding of the technology’s benefits, alongside the UK we see France and Germany as having the greatest potential in Europe and are therefore extremely excited by the opportunities our progress within these markets will create.”

Fusion IP (LON: FIP 70p/£50.96m)*
Fusion IP announced that Diurnal, one of its portfolio companies, has successfully raised £335,000 for its lead product, Chronocort(R), to complete the final stage of its Phase I trial. Diurnal is developing a novel approach to drug delivery that will help patients suffering from reduced levels of the key hormone cortisol. The funding will also enable the company to prepare for the Phase II trials, which are due to commence during 2012. Chronocort(R) has already received two related Orphan Drug designations from the European Medicines Agency, which affords ten years of market exclusivity after the grant of marketing authorisation in Europe. Fusion IP invested £135,000 in the round and as a result its shareholding remains at 43.1 per cent.

Hutchison China MediTech (LON: HCM 427.5p/£221.42m)
Chi-Med announced its final results for the year ended 31 December 2011. Revenues were up 24 per cent to $166.9m (2010: $134.5m), an operating profit of $5.4m (2010: operating loss $2.2m) was made and the company had a solid net cash position of $23.7m. Rapid growth in the prescription drug business of the China Healthcare Division offset the slightly slower growth in over-the-counter drug sales caused by the price increases HCM took to accommodate increased costs in certain raw materials.  As expected, these raw material costs have now either dropped back, or stabilised, and the rate of growth of OTC drug sales has improved. The Drug R&D Division has reinforced its position as one of China’s leading oncology and immunology research and development operations and further expanded its clinical portfolio and, in December 2011, signed a major licensing agreement with AstraZeneca PLC (LON: AZN). As a result, it self-funded for a second straight year.  Its leading drug, HMPL-004, is now getting ready for Phase III trials. The Consumer Products Division has continued to rapidly build its organic and natural products sales. It has increased its investment in expanding the infant nutrition business in China and it has solidly grown retail sales of Sen beauty care products. Looking ahead, the China Healthcare Division is set to continue benefitting from the increasing healthcare spending by the Chinese government and, year to date, its sales and profit are well ahead of the corresponding period last year. Christian Hogg, Group CEO said that HCM looks forward to delivering continued growth in shareholder value in 2012.

Iomart (LON: IOM 145p/£151.98m)
Iomart Group, the managed hosting and cloud computing company, expects to report a very strong set of results for the year ending 31 March 2012, ahead of market consensus. The Company expects to show an underlying EBITDA of not less than £11m, compared with £6.6m in fiscal 2011, and a pre-exceptional profit before tax of around £6.7m, compared with £3.6m the previous year. The Company has delivered strong organic growth in all operating segments as well as good performances from the acquired businesses. Management expects continued organic and acquisitive expansion prospects for the Company going forward.

ITM Power (LON: ITM 63p/£69.75m)
The energy storage and clean fuel company announced a new supply and distribution agreement with Horizon Fuel Cell Technologies for the Company’s small electrolyser range. The agreement gives Horizon exclusive rights to sell products in ASEAN together with India, Pakistan and Bangladesh and non exclusive rights to sell in other markets where Horizon has developed a marketing network including the USA. This is an important update for the Company which last month announced a contract with Boeing Research & Technology Europe for the development, assembly and field trials of a PEM electrolyser, and recently hosted a visit from Prof. Rod Smith, President of the Institution of Mechanical Engineers (IMechE) and Chief Scientific Adviser to the Department of Transport who was quoted as saying “…Companies like ITM Power are the future of our manufacturing industry.”

Milestone Group (LON: MSG 0.68p/£2.01m)*
AIM quoted provider of digital media and technology solutions today announced that it has raised £426,430 by way of a placing in the Company at a price of 1 penny per share. This is part of a wider placement of potentially up to £750,000, subject to permissions being granted at the Annual General Meeting on 30 March 2012. The proceeds of the placing will be used by the Company for general working capital purposes. Deborah White, CEO, commented: “It is important to highlight to shareholders that the business has undergone a major transformation over the last few months having been completely restructured. Milestone is now revenue generating and has several well received pilots in progress in our core markets. We hope to announce further progress during the course of the year.”

Netplay TV (LON: NPT 9.62p/£27.22m)
NetPlay TV announced that it had published circular containing details of a proposed Capital Reduction to create positive distributable reserves in the Company. A General Meeting has been convened to seek Shareholder consent to the proposals. The proposals envisage the creation of distributable reserves for the Company by the reduction by £22,838,010 of the share premium account and the cancellation of the 196,391,315 Deferred Shares already in issue. This would have the effect of eliminating the accumulated deficit in the Company’s profit and loss account creating positive distributable reserves for the Company.

Nostra Terra Oil & Gas (LON: NTOG 0.44p/£8.58m)
Nostra Terra, the oil and gas producer concentrating on a variety of horizontal drilling projects in the USA, announced that drilling has been completed on its initial vertical pilot well in the Bale Creek prospect, located in Oklahoma. Nostra Terra has a 30 per cent working interest in the Bale Creek prospect and all wells. Hydrocarbons have been confirmed in multiple pay zones, as anticipated, and the most attractive of the several zones has been identified. The first horizontal well will be drilled in this promising formation. Following the drilling of the initial vertical pilot well, a full suite of logs was run to thoroughly evaluate the potential productivity of each of several zones. Additionally, a sophisticated sonic log was run. It will enable the creation of a synthetic seismogram to further calibrate the proprietary 3-D seismic, previously shot. As a result the operator will be better able to steer and avoid geo-hazards in each of the horizontal wells to be drilled in the prospect.

Plethora Solutions Holdings (LON: PLE 5p/£10.04m)*
Plethora Solutions, the sexual and urological pharmaceutical company, has announced that the pre-submission meetings held with the Rapporteur and Co-Rapporteur (Spain and the UK, respectively) for its PSD502 treatment for premature ejaculation was positive. The Company submitted an eighty eight page Briefing Package, which is a summary of the complete dossier, and was reviewed by the agencies prior to the meetings. Following the review, all sections, including non clinical, clinical and manufacturing, were found to be entirely consistent with all the regulatory requirements for submission of a registration dossier. Plethora has confirmed that it is on track to file the dossier with the EMA in H1 2012.

Pulse Group (LON: PGRP 1.15p/£1.1m)
PLUS-quoted leading full service market research agency in Asia last week made two announcements. First a three year contract, worth $330,000, with a leading international banking group and second, a $100,000 contract win with Australia’s National Carrier. The banking group announcement stated that Pulse has been engaged to utilise its computer assisted telephone interviewing and mystery shopper services to analyse the market perception of the banking group as it aims to sharpen its service levels, especially at a time when the Asian banking scene is becoming ever more competitive.  This is the third financial institution that the Company has signed with over the last six months.  Regarding the second contract win this week with a leading Australian airline, Pulse  will  provide the Carrier  with  a comprehensive  quarterly  market  research  report  aimed  at  facilitating the development of its offering over  the course of 2012.

StatPro (LON: SOG 98p/£60.10m)
AIM listed provider of portfolio analysis and asset pricing services for the global asset management industry, announced preliminary results in which it saw a narrowing of pre-tax profits to £3.86m (2010: £5.62m) on the back of a fall in revenue to £31.72m (2010: £33.12m).  However, the Company remains optimistic about the year ahead, with the evolution of StatPro Revolution into Revolution Plus which utilises a single cloud based platform and WebAPI/Opensource Software which provides broader coverage of market data. With 92 per cent renewal rates for contracts helping to push recurring revenue to 94 per cent, the year ahead could provide great interest with the cloud based platform.

Surgical Innovations Group (LON: SUN 11.75p/£47.36m)
The designer and manufacturer of creative solutions for minimally invasive surgery announced that it has received 510(k) clearance from the US FDA for its reusable PretzelFlex™ device. This clearance permits the use of PretzelFlex™ in the US market for organ and tissue retraction. The PretzelFlex™ device is noted for its strength and stability to support large organs, which makes it a particularly useful tool in minimally invasive obesity surgery. The Board looks forward with confidence to the forthcoming product launch.

Symphony Environmental Technologies (LON: SYM 7.75p/£9.91m)
Symphony Environmental Technologies, the specialist in advanced plastics technologies including controlled life and anti-microbial products, and waste-to-value systems announced preliminary results for the year to 31 December 2011 in which it saw a marginal increase in revenues to £8.54m (2010: £8.48m) whilst profit before tax fell by 58.6 per cent to £0.42m (2010: £1.01m).  During the period, the Company invested heavily in the key areas of sales, marketing and product development, especially within Symphony Energy and the RUPERT tyre recycling project, which is expected to be completed during 2012. With a growth in the distribution network (67, up from 61) covering more than 90 countries, the Company continues to build its foundations.

Tarsus (LON: TRS 139.88p/£121.50m)
The international business-to-business media group has agreed to acquire 70 per cent of leading Turkish exhibition organiser Lifemedia Fuarcilik A.S., in a significant step toward its Project 50/13 target to derive 50 per cent. of its revenues from emerging markets by 2013. Tarsus will pay an initial consideration of TL30.0m (equal to approximately £10.6m) for the 70 percent interest, with estimated deferred payments of approximately £5m due in 2013, for a total estimated payment of approximately £15m. In addition, Tarsus has raised £10.9m to part fund the consideration at 135.0 pence per share, representing a discount of approximately 3.5 per cent. to the closing price on 19 March 2012. LifeMedia is expected to be earnings accretive in the current financial year. Life Media, established in 1997, has a leading position in Turkey’s housewares and gifts business to business exhibition sector and owns and organises two annual exhibitions in Istanbul, Zuchex (September) and Ideal Home Fair (April), and publishes related trade journals – one English and two Turkish language. The founder, Irfan Tiras, will continue to manage the business after its acquisition. Put and call options between Tarsus and Mr Tiras are in place in relation to the remaining 30 per cent shareholding in Life Media at various points between 2015 and 2018. Douglas Emslie, Tarsus Group Managing Director, said: “In executing our 50/13 strategy we have a number of opportunities under review, including certain exhibition businesses in China. Our flexible balance sheet means that we are able to move swiftly in securing assets should the opportunity arise.”

VPhase (LON: VPHA 0.78p/£9.88m)
VPhase, which develops and supplies of energy saving products for residential and commercial properties, has announced a revenue increase of 65 per cent to £440,000 for the twelve months to December 2011. Operating loss was higher at under £2m. Gross margins came under pressure as prices were reduced to secure volume before volume manufacturing could be established; these are expected to recover later in 2012 / early 2013 depending on speed of volume growth. The strategy is to build a platform for growth through end-markets such as social housing both domestically and overseas. Earlier this year, the Company secured an agreement to supply its product to Australia, an order which could be worth £12.4m in revenue over five years from April 2012. In the UK, City South Manchester Housing Trust have confirmed all future rewires will have a VPhase unit fitted; and Great Places Housing now specifies VPhase in all new builds, rewires, voids and boiler replacements.

Zeta Compliance Group (LON: ZCGP 41.50p/£3.6m)*
The Company has made some progress in the year finishing January 2012 with steady revenue. Zeta has seen The Fire Strategy Company Limited (now Zeta Fire Services); acquired in May 2010, start to win some sizeable business. However, demand for their core services was slower in the last part of the financial year to January 2012. The result is that the financial year just finished is below market expectations. The Company took action to ensure that costs were reduced wherever possible, and a new more focused company structure has been implemented. Approximately £300,000 of cost savings have been achieved to date. The Chairman is confident that their software offering will keep Zeta at the leading edge of the compliance software market.

*A corporate client of Hybridan LLP

The Hybridan Small Cap Wrap is a weekly review of some of the most interesting small cap stories of the past week.  Our review will usually be of those companies whose market capitalisations are less than £50m although we may occasionally cover larger companies.

13 March 2012

This week: Cello sings out aloud, good update from GEGP and a positive diagnosis from EKF.

A mid week dip was seen last week for the FTSE 100 and AIM All Share, both recovering partially to close the week at 5,895 and 810 points respectively. The European debt crisis was perhaps part of the cause of the difficulties last week, though this week it was announced that the Eurozone has backed Greece’s second bailout pending a contribution from the IMF. Other news included the UK announcing a lower than expected trade deficit in January, the OECD suggesting that the Eurozone is showing tentative signs of recovery (as has Britain, Japan and the US), and a jump in US retail sales figures for February. The week ahead sees unemployment and average earnings data, a financial policy committee meeting and Trade data being released.

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Disclaimer- This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only- please refer to the disclaimer in full below.

ACC Full year results, ANCR Appointment of Iain Menneer as MD, BXVP interim results to 31 December, CPX Fundraise, ENEG Full year results and launch of CSR programme, CRG Full year results and change of Chairman, DEMG full year results, DSN Directorate Change, EBQ Acquisition and Debt facility, EKF US Patent Grant, EHP 3 year biomarker collaboration with GlaxoSmithKline, FFA New Contract, FIP Fundraise for Seren Photonics, GGG Appointment of Brett Lambert as MD, GEGP Trading update, IVO portfolio Company completed phase II clinical study, JDG Acquisition, OMPP Cash Payment Received, PYC Interim Results Statement, RSI Proposed Listing Cancellation, SCLP ImmunoBody(R) Patent Approved in US, SRT Trading Update, SDM Preliminary results, SYNC Recommended Offer, TRS Full year results, THAL Final Results, TGL Exploration Update, TSTL Interim Results, USOP Suspended Additional Acreage, VAL Review published, VRP appoints Manchester clinical research facility to carry out trial and WAS New interest.

Access Intelligence (LON: ACC 3.5p/£7.97m)
Access Intelligence, the supplier of compliance Software-as-a-Service solutions for the financial services, procurement and media sectors, announced that turnover from continuing activities was flat at £7.2m for the year ending November 2011. Underlying EBITDA on continuing businesses fell 53 per cent to £0.7m. However, a maiden final dividend of 0.2p per share has been proposed as a sign of management’s confidence in the future.  The Company has continued investing in product innovation as well as strengthening its sales and marketing team. A new management team has been put in place at Cobent, while the Board has also undergone significant changes, with Joanna Arnold appointed COO in December 2011, Henrik Bang as Non-Executive Director in November 2011 and Kole Dhoot appointed CFO in March 2012.

Animalcare Group (LON: ANCR 165.5p/£34.28m)
Animalcare Group, the supplier of pharmaceutical and other premium products and services to the veterinary industry, announced the appointment of Dr Iain Menneer as Managing Director of Animalcare Ltd with immediate effect. This change in management of the UK business will allow other senior managers to give greater emphasis to the acceleration of the Group’s pharmaceutical new product development programme and investment opportunities. In addition, it will bring greater focus on increasing the penetration of its existing products with development and distribution partners outside the UK. Iain Menneer joined Animalcare Ltd in December 2003 working in marketing and business development roles, with a particular focus on commercialisation of new products.  Iain has been Head of Marketing since July 2009 and Director of Marketing for Animalcare Group from June 2011, being promoted to the Board on 1 July 2011.

Bioventix (LON: BVXP 210p/£10.6m)
A UK company specialising in the development and commercial supply of high-affinity monoclonal antibodies for applications in clinical diagnostics, announced its unaudited interim financial results for the six-month period ending 31 December 2011. Revenues have grown by 46 per cent compared with the six months to 31 December 2010, to £1,298,428 (2010:£890,256) and profit after tax increased by 83 per cent to £873,732 (2010:£493,511) compared with the six months to 31 December 2010. Cash balances were £1.94m at 31 December 2011 (£1.49m at 31 December 2010) and an interim dividend was declared of 4.84p (2011: 4.4p) The growth in sales has arisen from a continued increase in the supply of purified antibody products to its customers for research and development and commercial use and a higher level of royalties from established antibody products. Bioventix has previously reported optimism relating to its vitamin D activities and a leading antibody known as vitD3.5H10. This has now moved into large scale manufacturing at the company in order to supply quantities of antibody required for customers’ own R&D use. Revenue from the supply of this product has continued to grow significantly during the period.

CAP-XX (LON: CPX 29.25p/£22.53m)
CAP-XX, the designer and manufacture of thin-form supercapacitors, has raised £3.3m gross in a placing of 10.9m new ordinary shares at a price of 30p. The proceeds of the placing are to be used for the development of supercapacitors, including Stop-Start product prototyping for automotive applications and working capital purposes. A Chinese automotive component company has agreed to subscribe for 1.7m of these new shares, subject to Chinese Government approval. CAP-XX supercapacitors are designed to extend the performance of conventional battery power systems.

Cello Group (LON: ENEG 19.38p/£20.57m)
Cello Group, the insight and strategic marketing company, has reported its final results for the year to December 2011. Gross profit growth of 6.6 per cent was driven primarily by the acquisition of MedErgy and like-for-like gross profit growth of 2.1 per cent in its Research and Consulting business. Strong operating cash flow helped reduce net debt from £8.8m at end-2010 to £7.7m. The dividend has been raised by 20 per cent to 1.72p, the fifth consecutive year of dividend growth. The Company has also launched a new Corporate Social Responsibility programme ‘Talking Taboos’. ‘Talking Taboos’ is a campaigning brand that aims to directly tackle health and social issues using Cello’s experience and resources in the healthcare space. It will focus on areas where embarrassment, fear or ignorance prevents sufferers from seeking help.

Corin Group (LON: CRG 46.5p/£19.9m)
Corin Group, the manufacturer and supplier of orthopaedic devices, has reported a sales increase of 12 per cent to £48m for the year to December 2011. This represents an increase of 9 per cent on a constant currency basis. Growth in hip product sales of 41 per cent on a constant currency basis was offset by fall in knee products, of 20 per cent, and other products of 14 per cent. Hip sales were driven by the new cementless products and growth in the US, where FDA approval was achieved in May 2011. The Board has decided to suspend the dividend due to an expected increase in capital expenditure and working capital to support the launch of a broad range of Unity knee products.  After eleven years on the Board, eight as Chairman, Graeme Hart has retired and will be replaced by Linda Wilding, who is currently a senior non-executive director. The Finance director, Michael Roler, has also decided to step down in the summer.

Deltex Medical Group (LON: DEMG 22.12p/£31.44m)
The oesophageal Doppler monitoring, or ODM, firm, reported an unchanged full year profit and said it started 2012 with confidence. It reported a pretax loss for the year ended December 31, 2011 of £1.5m (2010: loss £1.5m) on sales of £6.3m (2010: £6.3). Higher quality revenue streams: probes generated 83 per cent of cash sales (2010: 76 per cent) and gross margins of 72 per cent were reported.  Deltex reported an operating loss £1.4m, unchanged from 2010. ODM is one of six high impact innovations mandated for implementation by NHS and CardioQ-ODM is the only haemodynamic monitor recommended by NICE. The NHS is actively pursuing implementation of the Group’s products; and Deltex making advances towards creating similar opportunities in other major healthcare systems around the world.

Densitron (LON: DSN 9p/£6.23m)
Densitron Technologies announces that Mr. Greg Hayes has resigned from his role as a Director of the Company for personal reasons with immediate effect. He remains committed to the Group and will continue in his position as President of the Group’s US subsidiary and as a key member of the Group’s senior management team. He will also focus on the development and leadership of key strategic programs which will enhance the growth of the Group going forward.

Ebiquity (LON: EBQ 85.5p/£50.30m)
The marketing performance management specialists have announced the acquisition of FLE Holdings Limited for an initial consideration of £5m, going up to a maximum of £11m based on the performance of FLE during the year to 31 December 2012. The acquisition further strengthens Ebiquity’s global reach and offering, with Ian Fairbrother, FLE’s founder, remaining as Chief Executive of the FLE business. Simultaneously, Ebiquity a new £30m debt facility with Bank of Ireland and Barclays to refinance existing debt, to fund the acquisition, and to make funds available going forwards for working capital and other potential future acquisitions.

EKF Diagnostics (LON: EKF 24.75p/£62.18m)
EKF Diagnostics Holdings, the in-vitro diagnostic devices company, announced that it has been granted a patent in the US for its HemoPoint H2 cuvettes. Further to the announcement made on 29 November 2011, EKF has been issued with a Grant of Patent Rights by the US Patent and Trademark Office in relation to patent rights for the cuvettes that are used with the HemoPoint H2, EKF’s hemoglobin measurement system. This follows on from the notice of allowance received in November last year.  EKF also announced in November that it had received CLIA waived status from the FDA for the HemoPoint H2 allowing Alere Inc., the exclusive distributor of the HemoPoint H2 product, to begin sales into the US market.

Epistem (LON: EHP 417.5p/£36.92m)
The UK biotechnology and personalised medicine company today announced a three year biomarker collaboration with GlaxoSmithKline in the field of fibrosis research. The collaboration will focus on identifying key characteristics of diseased fibrotic tissue on which Epistem will apply its proprietary RNA-Amp™ technology to facilitate building an in depth understanding of the disease. RNA-Amp™ is highly sensitive amplification technology which is able to provide gene expression information from small tissue samples and low of numbers of cells e.g. those obtained from the bulb of cells at the base of a single hair follicle, as well as laser captured microdissected (LCM) samples.  Epistem’s broad platform allows protein and gene expression biomarkers to be identified in important disease pathways at an early stage of pre-clinical validation for translation through to later stage clinical validation and patient stratification.

FFastFill (LON: FFA 11.25p/£53.1m)
FFastfill, the software and services provider to the global financial community, announced a new contract win for the supply of its trade execution and management suite, Trading Pro, to be deployed within R.J. O’Brien & Associates (RJO) operations in Europe and the US. Whilst more specific details on the contract were not provided, this does represent one of a number of recent contract wins for the Company, having last week also announced a contract win with INTL FCStone (Europe) Limited for both its Trading Pro, SEALS and Eclipse applications for execution, matching and settlement.

Fusion IP (LON: FIP 71p/£51.69m)*
Fusion IP, the university IP commercialisation company that turns world class research into business, announced that Seren Photonics Ltd, its LED technology company, has raised £1.8m in equity funding to enable Seren to transfer its cutting edge technology to manufacturing partners around the globe. Seren’s technology is targeted at the large and fast growing white light high brightness LED markets. Seren’s Chairman said that this market is worth an estimated $7bn in 2011 and is set to grow to $20bn by 2014. Seren’s funding round raised a total of £1.8m from a number of investors, including I2BF Global Ventures (GBP1, 100,000), Fusion IP plc (GBP300, 000) and IP Group plc (GBP400,000). The funding will be used to purchase key capital equipment for high brightness LED pilot scale development and create a specialist engineering team for the transfer of Seren’s processes to its commercial manufacturing partners. Post funding Fusion will have a 40.2 per cent undiluted shareholding in Seren.

GGG Resources (LON: GGG 24.25p/£41.39m)
GGG Resources and Auzex Resources Limited announced that Brett Lambert has been appointed as Managing Director of Bullabulling Gold Limited effective on 1 May 2012 following completion of the merger of the two companies.  Brett’s experience includes working in precious and base metals, and uranium. Over a successful three-decade career he has gained a strong set of financial, technical and people skills which cover the essential elements of exploration, commissioning and production. Importantly, his experience includes taking several projects through feasibility studies and into production and has been involved in two successful mergers and a number of asset acquisitions.

Good Energy Group (LON: GEGP 105p/£8.2m)
The Board of Good Energy Group, the UK’s leading 100 per cent renewable electricity supplier, announced a major contract renewal and an update in respect of its Feed-in Tariff (FIT) business. The Group announced that international clothing retailer SuperGroup Plc has renewed its electricity supply contract with Good Energy for a further twelve months. Since the first contract with SuperGroup was signed in July 2011, the size of the retailer’s property portfolio has grown by around 10 per cent. In addition, due to the considerable recent investment made by Good Energy in its systems and service levels, as of 9 March 2012, the Company had over 25,000 fully registered sites in its FIT administration business, including individual households and operators of domestic and industrial solar power plants. The Company expects to provide its new FIT customers with the same high levels of service which led to it coming top in the survey of customer satisfaction for energy suppliers published in 2012. Juliet Davenport, Chief Executive of Good Energy Group, said: “…We are excited about the opportunities to grow this business further in 2012 as the momentum in decentralised generation continues. Good Energy is at the centre of the action as the UK continues to move to a lower-carbon future.”

Imperial Innovations Group (LON: IVO 357.5p/£356.25m)
Leading technology commercialisation and investment Company’s portfolio Company Circassia, which is a specialty biopharmaceutical company focused on the development of anti-allergy product, has now completed phase II studies with its four leading allergy T-cell vaccines for cat, grass, house dust mite and ragweed validating the Company’s scientific approach. These results also come after the successful one year follow-up phase II study on Circassia’s cat allergy treatment, which demonstrated that patients maintained a significant reduction in allergy symptoms during a twelve month period after initial treatment. Circassia has successfully completed four investment rounds to date, raising a total of £93.1m for the development of a range of allergy T-cell vaccines based on an approach of tolerisation of the immune system whereby regulatory T cells suppress allergic immune responses, and desensitise patients to allergens.  These treatments offer significant market opportunities – more than 150 million people suffer from allergic rhinitis in the US and Europe, and more than 25 per cent of the US population, plus a growing number of Europeans, are sensitive to ragweed pollen. The current allergy treatment market is valued at approximately $12bn per year. Susan Searle, CEO of Imperial Innovations said: “Circassia is one of our most advanced investments and following the £60m fundraising we led last year, we are pleased to see its success in another key clinical trial. It is a great demonstration of the value being created within our portfolio and the quality businesses which we are backing.”

Judges Scientific (LON: JDG 609p/£26.13m)
Aim listed company engaged in the design, manufacture and sale of scientific instruments, announced that it completed the acquisition of 100 per cent of the share capital of Global Digital Systems Limited (GDS) for a cash consideration of £7.65m. An additional payment will be made to reflect the working capital available at completion in excess of the ongoing requirements of the business. Judges expects such payment to be covered by the cash inherited on completion. GDS designs, manufactures and sells instruments used to test the physical properties of soil and rocks. The products are sold worldwide to academic institutions and commercial customers conducting geotechnical research or providing testing services in relation to large civil engineering projects. The Company has achieved a compound annual growth rate of 23 per cent over the last five years. GDS’s unaudited accounts for the year ended 31 October 2011 show revenues of £4.9m and pre-tax profits of £879,000. The accounts show net tangible assets of £1.7m including cash of GBP809, 000. This acquisition should be immediately and significantly earnings enhancing. The Board expects the preliminary announcement of the 2011 results to be released on 29 March.

One Media Publishing Group (LON: OMPP 3.25p/£1.4m)*
One Media, the PLUS quoted consolidators and acquirers of music and video rights announced that it has negotiated and received a cash payment of $750,000 from The Orchard, its digital distributor. The deal, which enhances the relationship between the two companies, allows One Media to use the cash to make further acquisitions in intellectual copyrights. The Orchard announced on the 6th March 2012 that it will merge its operations with that of the Independent Online Distribution Alliance to form the world’s largest digital distribution service. Sony will own a significant portion of the merged companies. As a result of the deal, the merged companies will have revenues of about $130m, according to sources. One Media was named as a client party to the deal in the press releases and is positive regarding the merger.

Physiomics (LON: PYC 0.3p/£3.44m)
UK-based systems biology Company announced the financial results for the six months ended 31 December 2011. Physiomics is a computational systems biology services company, applying simulations supporting pharmaceutical decision making throughout the entire drug discovery process, particularly for cancer therapies. Turnover increased to £34,000 (2010 H1: £14,088) and the operating loss decreased to £328,674 (2010 H1: £374,354) In the period, Physiomics signed its first contract with a second major pharma company as a Virtual Tumour client and signed up for two new projects with Eli Lilly. The Directors are confident that the strategy being pursued will deliver new commercial deals in the short-term. In addition, Physiomics has a number of initiatives aimed at increasing the scope of its services, and the Directors believe they have pinpointed the biggest opportunity for long-term and game-changing growth, through the development of a clinical version of Virtual Tumour. The clinical outcomes database opens up a new area of opportunity and every effort is being made to move this product into beta-testing in clinical settings.

Rock Solid Images (LON: RSI 0.62p/£0.99m)
RSI announced the results of its strategic review. The Board has concluded that raising capital to continue to build on the significant progress made may well be more achievable if the Company de-lists from AIM and, accordingly, it has resolved to take steps to pursue the delisting of the Company’s shares from trading on AIM. The Company is not in consideration of any offers for the entire issued share capital of the Company and nor are any further offers being solicited. Consequently the Company can confirm that it is no longer in an “Offer Period” for the purposes of the Takeover Code.

Scancell Holdings (LON: SCLP 7p/£13.61m)
The developer of therapeutic cancer vaccines announced that its protein ImmunoBody(R) vaccine patent has been approved in the United States. The patent, which has already been approved in Europe and Australia, will further strengthen Scancell’s IP position around its proprietary ImmunoBody(R) vaccine platform. Scancell’s lead vaccine, SCIB1 is being developed for the treatment of melanoma and is currently in Phase I clinical trials. It is an innovative DNA vaccine being developed using Scancell’s ImmunoBody(R) technology. Phase 2 trials are due to start in Q2 2012.

Software Radio Technology (LON: SRT 26.75p/£28.40m)
SRT announced that results for the year ending 31 March 2012 are expected to be below market expectations. The Directors currently estimate that revenue will be approximately £6m with a profit before tax of approximately £0.1m. SRT estimates that approximately two thirds of the EU inland waterway market has now completed the fitting of AIS transceivers, of which the Company believes over 80 per cent are SRT-based products. The remaining third were expected to fit their transceivers during the first half of this calendar year, and therefore SRT’s customers had forecast significant product requirements during the latter part of Q4. However, SRT’s customers addressing these markets have indicated that they now expect demand to be skewed towards the end of the mandate deadline and that their orders to SRT will be delayed until later in the calendar year. SRT’s pipeline of pending orders and opportunities reflects the Company’s broader product offering, the adoption of AIS as the chosen technology and the potential of the market for AIS equipment. The Board is confident that a significant proportion of these leads will be converted into orders and will lead to a significant increase in revenues in due course. Furthermore the investment made to broaden the Company’s product suite should lead to a more diverse customer base, reduce future volatility in earnings and soften the impact of future timing issues.

Stadium Group (LON: SDM 70.5p/£20.71m)
Stadium Group, provider of electronic equipment manufacturing services and power supplies, announced preliminary results for the year to 31 December 2011. Whilst revenues remain unchanged during the period at £44.94m (2010: £44.81m), the Company was able to generate a significant increase in profit before tax- up by 38 per cent to £3.96m (2010: £2.87m). This is somewhat explained by Stadium’s cost reduction programme which has seen a dramatic reduction in the number of suppliers for the Company and a fall in the cost of supplies. Net cash at the end of the period stood at £2.94m versus £1.67m in 2010. The Company has a focus on operational improvement in overhead, purchasing and factory efficiencies which has yielded significant benefits and will continue to invest globally in technical capability.

Synchronica (LON: SYNC 12.62p/£20.04m)
The Boards of Myriad (SIX: MYRN) and Synchronica announced that they have reached agreement on the terms of a recommended increased share offer for the entire issued and to be issued share capital of Synchronica .Under the terms of the Revised Offer, Synchronica Shareholders will receive 4.83 New Myriad Shares for every 100 Synchronica Shares, valuing each Synchronica Share at around 15 pence and the entire issued share capital of Synchronica at approximately £23.85m. Myriad has received irrevocable undertakings to accept the Revised Offer from each of the Synchronica Directors, being David Mason, Angus Dent, Michael Jackson and Anthony DeCristofaro, in respect of, in aggregate, 1,978,656 Synchronica Shares representing approximately 1.25 per cent. of the issued share capital of Synchronica. They have also received irrevocables from Fidelity for approximately 9.04 per cent. These irrevocable undertakings will continue to be binding in the event of a higher competing offer being made for Synchronica.

Tarsus (LON: TRS 143p/£124.21m)
Tarsus Group, the international B2B Company, has announced a revenue increase of 42 per cent to £62m for the year ended 31 December 2011, with like-for-like revenues up 8 per cent. Underlying pre-tax profits were up 77 per cent to £17m, which helped net debt to halve to £14m. Tarsus remained focused on rapidly building businesses in the Emerging Markets, which accounted for approximately 38 per cent of group revenues. The Medical Division achieved 23 per cent organic revenue growth, while Labelexpo Europe and Asia both produced record results. Forward bookings represent approximately 53 per cent of anticipated full year revenues.

Thalassa Holdings (LON: THAL 28.5p/£2.77m)
Thalassa reported the Company’s results for the year ended 31st December 2011 had surpassed the expectations which they announced 13th October 2011. Thalassa’s financial performance for 2011 benefitted from the deployment of both of the Company’s source systems which resulted in increased operating activity both in the North Sea (LoFS) and the Arctic (Geophysical Mapping). 2011 revenue from continuing operations was $ 2,427,985 versus $ 404,086 for 2010, an increase of 501 per cent and net profit for 2011 amounted to $ 355,675 versus a loss in 2010 of $ 100,182 (excluding income from financial investment activities of $ 646,441).Year on year revenues for 2012 are anticipated to be significantly up on 2011 as the Group benefits from a full year of WGP’s activities. Long term growth prospects for the enlarged group remain encouraging with record inquiries and a number of potential long term contracts.

Touchstone Gold (LON: TGL 20.25p/£21m)
Touchstone Gold Limited announced additional assay results from the 1141 Zone of its Rio Pescado Project in Colombia. These additional results demonstrate high-grade gold intersections that are close to, or effectively at surface, and continue to outline a zone of mineralization which remains open down dip to the west and open along strike to the southwest. Dave Wiley, CEO of Touchstone Gold, commented: “We have previously commented on the emerging significance of the discovery of the 1141 Zone in our announcement dated 21 February 2012. In that announcement we highlighted the fact that the results from the 1141 Zone included the best ever gold intercepts and grades in the drilling to date. The current assay results are even better, and include a remarkable return from hole LPD-1279 which ran to over 28 metres of almost 9 g/t gold.” Given the importance of the discovery of the 1141 Zone, the Company has decided to commission a Light Detection and Ranging study and additional ground based geophysical surveys. These tools will help define the structural relationship between the Pepas and Filodehambre areas, which yielded very positive results, and the recently discovered 1141 Zone.

Tristel (LON: TSTL 37p/£14.79m)
The AIM listed manufacturer of infection control, contamination control and hygiene consumable products, announced interim results for the 6 months to 31 December 2011, with a 10.9 per cent increase in revenues to £5.061m (2010: £4.565m). though pre tax profits narrowed to £0.262m (£0.433m) in spite of a 3.1 per cent increase in gross margins to 68.6 per cent. This was largely as a result of an increase in overheads that resulted from the Company’s significant investment during the period of operations in China and Germany together with the establishment of a third leg of the business: the manufacture and sale of contamination control products to pharmaceutical and personal care manufacturers. Sales in China and Germany showed good pick up during the period, helping the Company to generate overseas revenues representing over 15 per cent of total turnover. These two markets offer significant opportunity for Tristel and, together with a 23.2 per cent increase in the sales of instrument disinfectants in the UK, shows early signs of the potential benefits to be had from the investment during the period.

U.S.  Oil & Gas the exploration company with its main asset in Nevada, USA, announced it has acquired additional lease acreage in Hot Creek Valley, through its wholly owned subsidiary, Major Oil International LLC.  The Company has leased  three  new  lots,  totaling  6,482  acres  and contiguous  with  existing  acreage, from the Nevada Bureau of Land Management.  The Company’s total acreage position in Hot Creek Valley is now 22,221 acres (approx. 90 sq. km.).  U.S.  Oil’s intention in acquiring the new leases is to enhance the Company’s Nevada asset, but it does not foresee expending significant exploration effort in advance of the currently planned drilling programme.

ValiRx (LON: VAL 0.62p/£6.52m)*
ValiRx, a life science company with a focus on cancer diagnostics and therapeutics for personalised medicine, reported that European Oncology & Haematology, Volume 8, Issue 1, Spring 2012 has just published a review by independent experts, on ValiRx’s lead therapeutic VAL201 and its potentially important role in the treatment of hormone induced refractory prostate cancer. Currently, VAL201 is undergoing late stage preclinical and toxicology studies to support the regulatory requirements prior to entering clinical trials.

Verona Pharma (LON: VRP 4.5p/£13.82m)
The biotechnology Company focused on chronic respiratory diseases has signed a contract with the Medicines Evaluation Unit (MEU) in Manchester, UK to undertake a Phase II clinical trial to demonstrate the anti-inflammatory effects of RPL554 with respect to chronic obstructive pulmonary disease (COPD). The trial is planned to start within the next couple of months following necessary ethical and regulatory approvals. The preliminary results from the trial are expected in Q4 this year. Michael Walker, CEO of Verona Pharma, said: “The fundraising completed in January this year has enabled us to initiate this important trial to show that RPL554 is anti-inflammatory. We have already demonstrated that this drug is a bronchodilator i.e. dilates the airways, enabling patients to breathe more easily. If we can demonstrate there is also a combined anti-inflammatory action, this would place RPL554 in a completely new class of therapy for COPD and asthma sufferers. Our objective continues to be to appoint a partner to develop RPL554 into a marketed medicine.”

Wasabi Energy (LON: WAS 1.5p/£36.05m)
Wasabi announced the acquisition of a 25 per cent in AAP Carbon Holdings Limited, a carbon asset management and engineering firm, which builds, accredits and invests in clean energy projects that generate carbon credits under the Clean Development Mechanism (CDM) of the Kyoto Protocol. The interest helps to extend its reach into the South African energy market. AAP has focused on the power intensive ferrochrome industry, with a flagship 17 MW cogeneration power plant that produces approximately 140,000,000 kWh per annum of low emission co-generation electricity and offers what Wasabi believes is an opportunity to use the Kalina Cycle(R) technology for an extra 10-20 per cent of additional power. Interestingly, the Company also spoke of its continuing feasibility study for the initial 6 MW Kalina Cycle(R) power plant at ArcelorMittal South Africa’s Vanderbijlpark steel plant, whose expected completion is in the next few months and which could be followed by (if successful) by a 24 MW Kalina Cycle(R) power plant.

*A corporate client of Hybridan LLP

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The Hybridan Small Cap Wrap is a weekly review of some of the most interesting small cap stories of the past week.  Our review will usually be of those companies whose market capitalisations are less than £50m although we may occasionally cover larger companies.

7 March 2012

This week: Summit hits new highs, positive Enegi and eServ-es a more Global audience.

With the FTSE 100 and AIM All share closing where it opened last week, at 5,910 points and 828 points respectively, this week so far has seen something of a dip. News from Asia appeared to be slightly troubling with China announcing a cut in its growth target to 7.5 per cent and Goldman Sachs posting a loss in Asia following declines in the Chinese stock market. In Europe, the UK announced that its Service Sector growth in February had fallen (as measured by the Purchasing Managers’ Index, to 53.8 from 56, though there was a surprise increase for Eurozone retail sales in January. The week ahead sees Industrial production and manufacturing output data, construction output data, and the MPC interest rate decision in the UK.

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Disclaimer- This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only- please refer to the disclaimer in full below.

ALO Acquisition of Ethiopian Gold Projects, ABH Appointment of Dr. Stewart White as Acting CEO, BAO Operational Update, BEM Preliminary Results, DEMG Procurement boost for ODM, DSN Legal Proceedings, ENEG Garden Hill South Update, EGX Collaboration & Fundraise, EHP Signs Tuberculosis Channel Partner Agreement, ESG Agreement with Somalian operator, GGG Exploration Update, GDP Interim Results, HER Drilling update, HYD Full year results, IGE Trading Update, IMTK New Contract, MDZ Working relationship with Topshop, MSG Final Results, OMPP Preliminary Results, OMI Grant of Permits, OXB Full year results, PYC Agreement to advance oncology candidate, PWS Interim Results, PPIR Preliminary Results, PRX Full year results, SUMM Alzheimer’s update and consultant appointed, TGL Corporate Update and TCN Trading Update.

Alecto Minerals (LON: ALO 1.62p/£3.17m)
AIM listed multi-commodity exploration and development company with projects in Ethiopia and Mauritania announced that it has completed the acquisition of Nubian Gold Exploration Limited, owner of the 1,953 sq km Aysid-Metekel Gold Project.  At the same time, Alecto has made the first share based payment in respect of the acquisition of Rift Valley Resources Ltd, owner of the 945.5 sq km Wayu Boda Gold Project.  Both projects are located in mineral rich regions of Ethiopia and are wholly owned by the Company. In addition, the Company has signed a deed of variation in relation to the share purchase agreement to acquire Rift Valley which reduces the total purchase price payable by Alecto by 10 per cent.  This has been negotiated further to receiving notification that the Company requires an additional exploration licence for emeralds at Wayu Boda, as outlined in the announcement dated 9 December 2012.

Angel Biotech (LON: ABH 0.27p/£8.84m)*
Angel Biotechnology Holdings, (ABH), the biopharmaceutical contract manufacturer, announced that Mr. Gordon Sherriff has resigned from the Board of Directors with immediate effect. Angel is pleased to announce the appointment of Dr. Stewart White as Acting CEO. Dr. White was recruited into his present position as Commercial Director with a view to his progression to becoming CEO in due course. Stewart has made a significant impact on the business since joining Angel in December 2011 and the Board has every confidence in Stewart’s ability to fulfil this new role and for the appointment to be made permanent after a period of evaluation.

Baobab Resources (LON: BAO 15p/£28.52m)
Baobab Resources is an iron ore, base and precious metals explorer with a portfolio of exploration projects in Mozambique. The Company presented an update of activities at the Tete iron / vanadium / titanium Project, where resource inventories currently total 324Mt (JORC Inferred). All analytical results have been returned from the drilling programme and have been forwarded to Coffey Mining to complete a resource estimate in accordance with the JORC code. Scoping level viability analysis of the Tete Project – as previously announced in the RNS dated 29 November 2011 – reported a before tax net present value of US$1.4bn, which equates to an internal rate of return figure of 34 per cent.  The Monte Muande joint venture magnetite/phosphate drill results are currently being processed and are expected to become available during March 2012. Rio Mufa scout drilling confirmed the absence of economically significant coal seams.

Beowulf Mining (LON: BEM 14.38p/£30.25m)
Beowulf the mineral exploration company which owns several projects in Sweden announced its unaudited preliminary results for the year ended 31 December 2011. Beowulf currently has ten exploration projects in Northern Sweden primarily prospecting for iron, copper, gold and uranium. The unaudited results show that the group incurred a loss before and after taxation for the year of £690,818 (2010: loss of £474,395) reflecting their significant drilling programmes and ongoing exploration activities. Approximately £6.05m is held in cash at the year end. Efforts in 2011 were concentrated on the flagship iron ore deposits at Kallak, which management believe offers the best near term development opportunity for the Company and its shareholders and which has proved to be a much more substantial deposit than originally envisaged.

Deltex Medical Group (LON: DEMG 22.62p/£32.15m)
Deltex Medical, the manufacturer of oesophageal Doppler monitoring (ODM) systems, has announced that the Department of Health’s Innovative Technology Adoption Procurement Programme (ITAPP) has selected intra-operative fluid monitoring as one of three technologies for wide adoption by the NHS in England. Deltex Medical’s CardioQ-ODM™ is the market leader in intra-operative fluid monitoring in the UK and is the only intra-operative fluid management monitor recommended by the National Institute for Health and Clinical Excellence (NICE). Deltex Medical believes ITAPP’s decision to push fluid management monitoring nationally is one of the first visible steps in the NHS’s implementation plan for ODM.

Densitron (LON: DSN 9p/£6.23m)
The Board of Densitron announced that the landlord of premises located at Wallsend, Tyne and Wear, near Newcastle has instigated legal proceedings against the Company. The premises were occupied by the Company’s former subsidiary, Densitron Ferrograph Limited. Densitron Ferrograph Limited was sold by the Company in 2006. The action from the landlord involves seeking rectification of an existing lease to seek to make Densitron Technologies the tenant under the lease and involves a claim of approximately £300,000 in unpaid back rent. If the action were to succeed there would also be a liability for unpaid past business rates of approximately £70,000. Densitron, after taking legal advice, intends to defend the claim vigorously but at this time the outcome cannot be forecast with any level of certainty. In addition to investigating further the underlying circumstances, Densitron will be seeking to agree the re-letting of the premises by the landlord on a basis that is without prejudice to the existing claim to limit the possible overall liability.

Enegi Oil (LON: ENEG 20.75p/£22.03m)
Enegi, the oil & gas company focused on Canada and Ireland, has announced that it has received encouraging news from McCaffrey Consulting Services Ltd., an independent consultant reservoir engineer engaged by the Company. Preliminary analysis at the Garden Hill South accumulation in Newfoundland, based on transient pressure data captured following the acid injection, indicates the bullhead acid squeeze has been effective. The data suggests that connectivity to the reservoir has improved significantly with the effective producing length of the well more than doubling and fluid mobility increasing by approximately nine times. The well will now be flowed to confirm the veracity of the analysis and Canada’s Department of Natural Resources has been informed of the intention to bring the well back online over the following days.

Energetix Group (LON: EGX 27.5p/£17.92m)
Energetix Group which develops and commercialises alternative and efficient energy products, announced that its subsidiary Energetix Genlec Limited has entered into an agreement with Scottish Power to trial the Kingston microCHP boiler. Under the agreement Genlec will install the Kingston and data monitoring equipment in a range of different domestic premises. The trial is part of Genlec’s field performance evaluation and will help optimise the performance prior to release of the production version later this year. It will also allow Scottish Power to fully evaluate the system working in a domestic setting and understand the potential benefits to customers.  In a separate venture, the Company raised approximately £4.6m through a placing of 18,266,600 new Ordinary Shares. The funds will be used to create a unique dual fuel energy company that will provide free Kingston microCHP boilers to its customers in return for a commitment to purchase gas and electricity for a fixed period.

Epistem (LON: EHP 422.5p/£37.37m)
The biotechnology and personalised medicine company announced the signing of a sales and marketing agreement for its rapid molecular test for Tuberculosis (TB) with Xcelris Labs, one of India’s leading Genomics research and diagnostic testing companies. Following the completion of clinical testing, Epistem will prepare regulatory submissions in advance of the launch of its first molecular TB test including patient assessment for antibiotic resistance using its novel GenedriveTM platform. Genedrive™ provides a rapid (less than 30 minutes), low cost, simple to use ‘Point of Care’ device with high sensitivity and DNA specificity. Following regulatory approval, GenedriveTM will be positioned to be included as part of the Indian Revised National TB Control Program (RNTCP).

eServ Global (LON: ESG 22.12p/£43.55m)
eServGlobal, the mobile money solutions provider, has announced that it will work with Dubai-based mobile network operator, ASGSM.MOBI, to bring mobile money services to ASGSM.MOBI subscribers both in Somalia and abroad. ASGSM.MOBI holds a GSM and 3G license for Somalia and has been operating in the country since 2009. eServ’s PayMobile platform will be hosted in Dubai.

GGG Resources (LON: GGG 19p/£32.43m)
GGG Resources provided an exploration update this week, in which it announced the completion of Initial exploration drilling at Gibraltar totalling 2,805m in 14 holes, and also that data from the Deeps Exploration Programme has been received from the recently completed seismic survey that enhances the prospectivity of high grade mineralisation at depth along the Bullabulling Trend. Assay results from the Gibraltar drill are showing new higher grade intersections, with further drilling currently in progress. Recent detailed airborne magnetic and gravity surveys of the Deeps Exploration Programme will be combined with the seismic data to provide a 3D geological model of the Bullabulling gold deposit. Earlier this week, the Company announced that the Bullabulling Gold Ltd (GGG’s flagship project near Coolgardie in Western Australia) will see admission to AIM on 16th March 2012, and also announced a 23 per cent increase in its gold resource estimate to 3.2m ounces. This new resource will be the basis of the pre-feasibility study.

Goldplat (LON: GDP 15p/£25.18m)
The AIM listed gold producer announced its interim results for the six months ended 31 December 2011. It announced a 74 per cent increase in profit before tax to £2.37m (2010: £1.36m), had a net cash position of £4.6m as at 31 December 2011, and the gold  mining  and  development  portfolio  in  Kenya, Ghana and Burkina Faso is advancing. Goldplat aims to have delineated in excess of 1m ounces of gold resources in 2012. Kilimapesa Gold in Kenya poured its first gold in January 2012 and there is a target of increasing gold production to a rate of 10,000 ounces per annum within the mine’s first year of operation. At the Anumso  Gold Project in Ghana, a 4,800 metre drilling programme is underway aimed  at converting and increasing  the historic non-JORC gold resource of 262,107 ounces of gold to a JORC compliant status. At the Nyieme Gold Project in Burkina Faso, Goldplat is planning a work programme to target additional areas of economic potential following completion of the resource drilling programme in 2011. Gold recovery operations in South Africa and Ghana are up 10.74 per cent to 15,404 ounces of gold (2011: 13,910 ounces) and in South Africa an increased milling capacity has been added. An agreement has been signed  with  Central  Rand  Gold  aimed at recommencing gold mining  of  two  historic  gold  sites  in  return  for a 5 per cent net smelter royalty. Ghana has seen a marked increase in by-products received for processing through existing contracts with Goldfield, AngloGold and Golden Star Resources; the toll processing operation with Adamus Resources is performing well; and there is advanced negotiations with other mining companies regarding acquiring further processing by-products for gold recovery from Burkina Faso.

Herencia Resources (LON: HER 2.2p/£33.49m)
Herencia, the Chilean mineral exploration and development Company, provided a drilling update at the Guamanga Project (Herencia earning 51 per cent), and results have now been returned from the remaining seven holes (of the eleven holes drilled in December 2011) and the majority of holes drilled in the December program intersecting copper-gold mineralisation. Gold, copper, molybdenum and cobalt mineralisation has been shown, with the Company suggesting that the outcrops being in a topographical position would lend it to open pit mining and appears to be open in a number of directions.

Hydro International (LON: HYD 142.5p/£20.47m)
Hydro International, which provides products for the control and treatment of water, has announced a 10 per cent rise in its revenues for the year ending December 2011. Underlying profits and dividend rose by 9 per cent. During the year, the Company accelerated its international expansion; improved sales channels helped US sales increase by 12 per cent. In the UK, major contracts were delivered to Thames Water and a new business called ‘Hydro Consultancy’ was launched to meet demand for flood risk advice and support storm water sales in the UK. The Company is planning to expand into the wider water sector (including into municipal drinking water and industrial water).

Image Scan Holdings (LON: IGE 2.88p/£2.19m)
Image Scan, specialists in the field of real-time 3D and 2D x-ray imaging for the security and industrial inspection markets, provided a trading update in which it stated that the 6 months to 31 March 2012 will bring in increased revenue, in part due to a large order book. With an opening order book of £2.3m and orders during the period thus far amounting to £520,000, the Company powers ahead with optimism. The Company’s FlatScan portable screening system and Axis baggage screening system have both seen an encouraging level of interest and a renewed level of interest from the industrial sector has continued into 2012. With £370,000 of cash in the bank and an increased level of R&D expenditure, we continue to observe with interest how the order book and top and bottom line performance develops.

Imaginatik (LON: IMTK 0.46p/£2.39m)
Imaginatik, the provider of collaborative innovation software and processes, announced a new contract with a US provider of healthcare services and medical research. The Company will offer Innovation as a Service and consultancy during the first year, bringing in $120,000, followed by an ongoing annual contract worth $150,000 per year for the innovation software platform (Innovation Central) to help achieve strategic operational objectives. Interestingly, the new contract is with a client that had an original contract with Imaginatik until March 2012, but cancelled due to budget constraints, though it appears the service previously offered was greatly appreciated based on its decision to re-engage.

MediaZest (LON: MDZ 0.25p/£0.82m)*
MediaZest (MDZ), the creative digital out-of-home advertising company announced a new working relationship with Topshop last week. Topshop has engaged MediaZest to provide creative audio visual solutions to showcase its new campaign video shoot by Nick Knight. The CEO of MediaZest looks forward to further collaborations adding their technology into Topshop’s promotional campaigns.

Milestone Group (LON: MSG 0.82p/£2.45m)*
Milestone (MSG), provider of digital media and technology solutions announced its final results for the year ended 30 September 2011. During the year, the Group generated sales revenues of £155,987 (2010: £56,752) and made a loss of £1,198,552 (2010: £1,225,480). It improved the net liability position to£462,394 (2010: £1,027,031). Also, the Group acquired the award winning digital production company, Oil Productions Ltd and established a wholly owned subsidiary, OnSide Now Ltd. The management is confident that they have the necessary building blocks in place to continue this positive momentum through 2012 and beyond.

One Media Publishing Group (LON: OMPP 3p/£1.3m)*
One Media Publishing Group announced its preliminary results for the year ended 31 October 2011. One Media continues to be profitable and debt free and during the year acquired over fifteen new music catalogues, with more than 20,000 tracks of music contained within, and their first movie catalogue of some 3,000 hours of audio-visual content. The Group increased turnover to £1,662,516; this is a year on year increase of 14.3 per cent on the equivalent figure of £1,454,320 for 2010. Pre-tax profits are reported at £330,810; up by 32.5 per cent on the £249,731 reported for 2010. One Media reported that a share buy-back at 0.458 pence of 52.43 per cent (47,909,291 shares) of the Group’s ordinary shares had been finally completed and cancelled. Also, they welcomed the EU Committee’s recommendation to extend copyright terms from fifty to seventy years. The recommendation will extend all of One Media’s copyrights by up to forty percent and it is a significant milestone in the music industry and an encouraging sign that a level playing field is being created. One Media also declared and paid maiden dividends and introduced an Employee Share Option Scheme. The directors are confident that within their marketplace and as they acquire more music catalogues there will be steady growth in both the downloading business and the fledgling business of supplying music for synchronisation. They will continue to make acquisitions within the scope of their resources and will be vigilant in monitoring overhead and cost centres to ensure the Group’s profitable history is not compromised.

Orosur (LON: OMI 53.25p/£41.52m)
Orosur Mining the South American-focused gold producer and explorer announced that the final mining permits have been granted for exploitation of ore from the Arenal Deeps project, consequently the mine is now fully permitted to operate. All the mining equipment and personnel necessary to ramp up stope production to its designed level are currently on site and the project is expected to reach design capacity in the fourth quarter of fiscal 2012. Production for the quarter was 13,668 ounces of gold. However delays and changes in process have resulted in production forecasts being lowered by 4 per cent to 55,000 ounces, and costs have increased to a range of US$930 to US$950 per ounce. Orosur Mining also announced that it has commenced drilling on its 100 per cent owned Mahoma Project in Uruguay. A programme of approximately 3,000 drill metres is planned.

Oxford BioMedica (LON: OXB 3.02p/£28.58m)
Oxford BioMedica, the gene-based biopharmaceutical company, has announced 2011 revenues of £7.7m and underlying R&D costs of £14.7m. It ended the year with a diversified portfolio of five clinical programmes and a proprietary manufacturing facility. During the year, the Company secured three IND approvals from the FDA within 12 months for its novel ocular gene therapies partnered with Sanofi. With net cash of £14.3m at the end of December, the management believes it has sufficient financial resources to fund the business until Q1 2013, and is actively pursuing various initiatives to secure further funding for its core programmes.

Physiomics (LON: PYC 0.34p/£3.84m)
Oxford based systems biology company announced that it has signed a new agreement with a major global pharmaceutical company. Under the agreement, Physiomics will determine the optimal dosing and timing of a new compound currently under development by this new client, in combination with irradiation therapy. The project will be performed on a fee-for-service basis.

Pinewood Shepperton (LON: PWS 247.5p/£116.94m)
A leading provider of services to the global film and television industry announced its unaudited interim results for the six and twelve months ended 31 December 2011. The Company is delivering the unaudited interim results following a change in its accounting reference date from 31 December to 31 March. Key developments in the twelve months ended 31 December 2011 are that revenue came in at £50.7m, an all-time high, up 17 per cent with film revenue up 24 per cent. Operating profit came in at £10.3m up 14 per cent and the loss before tax was £3.9m (2010: profit £5.8m). Ivan Dunleavy, Chief Executive, said: “The on-going demand from big budget films and large scale television shows for our unique facilities remains resilient. Our international strategy continues to deliver growth and further opportunity to extend the Pinewood brand overseas. Against these record results the Company is well positioned to develop its activities….The Company has got off to a positive start in 2012”.

ProPhotonix (LON: PPIR 7.25p/£3.23m)
The manufacturer and developer of LED systems and laser modules provided preliminary results for the year to 31 December 2011 in which it saw an 11.7 per cent increase in revenue to $17m (2010: $15.2m), with the bulk of the growth coming from the Company’s LED specific businesss. Overall, the Company posted a narrower loss for the period at $843,000 (2010: $2.8m), and going forwards the Company has a larger order book to look forward to of $16.6m (2010: $15.1m). A $5.1m placing in July 2011 helped the Company to a cash balance at period end of $4.1m.The Company develops LED systems out of its Cork Ireland base, and Laser Modules from Stansted in the UK, covering the core markets of Industrial (70 per cent of the business), Medical and Homeland Security and Defence. ProPhotonix has a wide range of customers, some of whom include blue chips such as TetraPak, Abbott, 3M and Nestle, all providing the Company with a sound base for generating revenue- continued growth in the size of the industry due to the increasing implementation of long lasting/robust lighting solutions, automated production and servicing facilities, and the need for exacting standards and precise measurement will serve the Company well going forwards.

Proximagen (LON: PRX 145p/£91.52m)
Proximagen Group, which focuses on the treatment of disorders of the central nervous system (CNS) and inflammatory diseases, has announced its annual results for the year ending November 2011. The main financial highlight of the year was the strategic partnership agreement signed with Lundbeck, which included a £10.3m equity investment in Proximagen at 180p per share. As a result, the Company ended the fiscal year with a strong cash balance of £51.6m, compared with £48.2m a year ago. During the year, it also acquired global rights to two CNS drug candidate programmes from GSK designed to treat cognitive decline, pain and Parkinson’s disease. Twenty four further patents were granted in fiscal 2011, bringing the Company’s total granted patents to 285.

Summit Corporation (LON: SUMM 6.88p/£12.89m)*
AIM listed UK drug discovery company today reported new positive data from in vivo studies in its drug discovery programme targeting Alzheimer’s disease and related neurodegenerative disorders.  One of the main characteristics of the disease is the formation of neurofibrillary tangles (NFT), which are toxic aggregates of tau protein that contribute to the death of nerve cells in the brains of Alzheimer’s patients. Additional studies have highlighted how inhibiting the enzyme O-linked N-acetylglucosaminidase (OGA) can prevent tau from aggregating and forming NFTs, confirming it as a target for the development of potential disease modifying drugs to treat Alzheimer’s. Using Seglin™ technology,  the latest in vivo, non-clinical studies evaluated the properties pertaining to the movement of drugs within the body and the results showed that they were able to penetrate the Blood Brain Barrier (BBB) and enter the central nervous system (CNS).  This is an important prerequisite for treating CNS disorders as delivery of drugs to the brain represents the major challenge when developing medicines for their treatment. To support the development of the Alzheimer’s programme, Summit announced that Dr. Ann Hayes has joined the Company as a consultant.  Dr. Hayes brings a wealth of scientific expertise in the area of neurodegeneration having held a number of senior positions within the pharmaceutical industry including Therapeutic Director of CNS Drug Discovery at GlaxoWellcome. Barry Price, PhD, Executive Chairman of Summit said: “…the positive results further demonstrate how Seglin™ technology can produce potent, selective Seglins with attractive drug-like properties to reinforce our belief about the platform’s potential as a major source of new medicines.”

Touchstone Gold (LON: TGL 19.38p/£20.09m)
Touchstone announced that it has entered into an option agreement with a private company through its wholly owned subsidiary, Touchstone Colombia, to acquire a 90 per cent interest in four mining concessions, over a total area of 57 square kilometres, that together comprise the important Santa Rosa Project located in the well known gold mining district in the south of the Bolivar Department, Colombia. David Wiley, CEO of Touchstone Gold, commented: “We are pleased to announce the Company’s first land acquisition since IPO.”  The material terms of the Agreement are an initial payment of US$59,000 to the current concession holders, a non-related private company, upon signing the option agreement; an additional payment of US$50,000 upon the mining concessions being registered to Touchstone Colombia on the National Mining Registry of Colombia; four annual payments of US$327,750 that will commence one year after the mining concessions have been registered; US$1,000,000 in exploration expenditures on the property before earning the 90 per cent interest; and the Company has secured a right of first refusal to acquire the remaining 10 per cent of the Santa Rosa Project.

Tricorn (LON: TCN 37p/£12.36m)
Tricorn Group the tube manipulation specialist gave a trading update ahead of its 31 March 2012 year end. The Group has made an encouraging start to the final quarter with demand remaining strong and operational performance continuing to improve. Operating margins in all three of the Group’s Divisions are anticipated to be ahead of first half performance. As a result the Company expects that full year Group profit before tax will be ahead of market expectations. The Company also announced its intention to establish a manufacturing facility in China as a key part of its strategic development in South East Asia. This is underpinned by customer demand for a more local, responsive supply relationship. The Group anticipates that the facility will be operational by the end of 2012 and earnings enhancing in 2014. Initial investment is expected to be approximately £1m.

*A corporate client of Hybridan LLP

The Hybridan Small Cap Wrap is a weekly review of some of the most interesting small cap stories of the past week.  Our review will usually be of those companies whose market capitalisations are less than £50m although we may occasionally cover larger companies.