Small Cap Wrap: Month: October 2012

AIM Breakfast - Archive

16 October 2012

This week: Mobile banking makes MONI, a new SMT for SUMM and YOU can be a global leader.

The last week to Friday saw the FTSE 100 falling by 78 points to 5,793 and the AIM All Share falling by a relatively small 5 points to 702. News has seen a slowing down in the UK inflation rate (to 2.2 per cent in September from 2.5 per cent in December), and similarly in China where inflation slowed to 1.9 per cent from 2 per cent in August. The US on the other hand saw a 1.1 per cent rise in September retail sales (after a 1.2 per cent increase in August). The week ahead sees Unemployment and average earnings data, MPC minutes and retail sales data being published.

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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.

ACM Trading Update, AMA Update for Sega project, AKT Laurantis Pharma Manufacturing Agreement, AUE Environmental permit granted, AUR large gold target identified, BGL New Appointment, CMI Warning & Approval, CNR Fundraise, CSTL £2m Settlement,  EHP Preliminary results, FIP Preliminary Results, LID Premier of LiDCOrapid v2, MONI Trading update, NPT Trading Update, NEW Project Working Interest Increase, ODX Trading update, OMPP Name Change, OMI First Quarter, OSX Draw down of funds, OXB Update on TroVax(R) Development Strategy, POS Results and £1m Contract, SCLP Final Results, SKR Operational/Waiver update, SRT Trading update, SUMM Positive SMT C1100 Phase 1, SUN exhibition at ISHA in the US , TRCS Strengthening of Board, TPJ Assets Divestiture, VRP Data from Phase I/IIa study, YOU Results show a rise in profits

Accumuli (LON:ACM 11.12p/£16.53m)
Accumuli, the provider of Advanced IT Security Services, this morning announced a trading update. Trading for the six months ended 30 September 2012 is in line with management expectations. EdgeSeven Limited, acquired in June 2012, has been successfully integrated into the Group and is making a positive contribution to Group EBITDA. The Group continues to achieve strong cash generation. After acquisition costs and the initial £0.9m consideration for EdgeSeven, the closing cash balance at 30 September 2012 was £1.5m (March 2012: £2.0m). The Group will announce interim results for the six months ended 30 September 2012 on 20 November 2012.

Amara (LON:AMA 76p/£127.72m)
Amara (formerly Cluff Gold), the  West African focused gold mining company, has announced the results of the Preliminary Economic Assessment (PEA) and an exploration update for its Sega Gold Project in Burkina Faso. The PEA has confirmed the potential viability of mining oxide and transitional material at Sega, located 20km north of Kalsaka, and transporting it to Amara’s existing heap leach operation at the Kalsaka Gold Mine. The project could yield an internal rate of return of 48 percent with a post-tax net present value of US$49.5m using a gold price of US$1,500 per ounce and a discount rate of 10 per cent for processing. Cash cost per ounce produced excluding royalties is estimated at US$821 per ounce. The mining licence is expected to be received in Q1 2013 and mining anticipated to commence in H1 2013.

Ark Therapeutics Group (LON:AKT 3.5p/ £7.34m)
Ark Therapeutics has been selected to manufacture and supply Lymfactin(TM) to Laurantis Pharma under a conditional agreement announced today by the Finland-based companies. The agreement is subject to Laurantis receiving regulatory approval to commence its phase I clinical trial. Lymfactin(TM) uses an adenoviral vector to deliver vascular endothelial growth factor (VEGF-C) during transplantation of lymph nodes in order to avoid lymphedema. The phase I clinical trial using Lymfactin(TM) to treat breast cancer-associated lymphedema is targeted to begin in 2013, and will recruit patients in the USA and Finland. Breast cancer-associated lymphedema is the most common form of secondary  lymphedema, occurring in approximately 20 per cent of breast cancer patients who undergo auxiliary lymph node dissection. The incidence is even higher in those who also receive radiotherapy, and this complication may even occur in those who undergo a lymph node biopsy as part of treatment. No therapeutic treatment currently exists to treat this disease. In the US, approximately 110,000 patients are living with breast cancer-associated lymphedema, and nearly 15,000 new patients develop the complication each year. The number of lymphedema patients in Europe is estimated to be roughly the same as in the US.

Aureus Mining (LON: AUE 65p/£78.67m)
Aureus Mining, which is focused on the New Liberty gold deposit in Liberia, has announced the approval of its Environmental Impact Statement (EIS) and the granting of the environmental permit by the Liberian Environmental Protection Agency. The receipt of the environmental permit means that Aureus has all of the major licences and permits required for the construction phase of the project. This is a major achievement in the development of New Liberty, which will be Liberia’s first commercial gold mine and Aureus’ first mine in its highly prospective 546 km2 total licence area.

Aurum Mining (LON: AUR 3.12p/£3.69m)
Aurum Mining, the gold and tungsten explorer focused in Spain, has provided the results from the soil sampling programme that has been carried out on the Pino de Oro permit area in North West Spain. Previous work on the Pino permit area had focused on the “El Facho” structure where drilling to date has enabled a preliminary non-compliant resource estimate of some 122,000-145,000 ounces of gold at average grades of approximately 1g/t. The recent soil sampling programme was undertaken in an attempt to expand the potential resource on the permit area through the identification of additional mineralised structures in close proximity to El Facho. The work has identified a major new target in close proximity to El Facho, and if it can be shown to be either an extension or repetition of the El Facho structure it would be a significant addition to the size and potential of the opportunity at Pino.

Bullabulling Gold Limited (LON:BGL 10.75p/£31.07m)
Australian-based mining exploration company, Bullabulling Gold, has announced the appointment of Mr Mark Braghieri to the newly created position of General Manager of Development. In this role Mark will assist the Company in the completion of the Bullabulling Gold Project Pre-feasibility study, before taking responsibility for the successful execution of the Definitive Feasibility Study, project construction and ultimately commissioning. Mark has a degree in Mining Engineering and a Masters of Business Administration, with 30 years of industry experience predominantly in large-scale open-pit mining. Mark has held senior technical and operational management positions for a number of well regarded Australian and international mining companies, during which time he was involved in the Boddington Gold Mine feasibility study and the establishment of the Kalgoorlie Super Pit, two of the largest gold mines in Australia. Mark has also held senior management roles with major Australian open pit mining contractors with multi-project responsibility. The Company is continuing to progress the Pre-Feasibility Study into the development of the Bullabulling Gold Project and anticipates providing an update on the status of the study including guidance on preliminary estimates of capital and operating costs, later in October.

Ceres Media International (LON:CMI 1.02p / £0.65m)
Ceres Media warned that trading conditions had continued to be difficult, and that sales had remained below management’s expectations. The Company reported that it had further reduced its overheads and is carefully managing its working capital.  They also announced that Leslie Barber, the Executive Chairman of the Company, will take up the role of Non-executive Chairman with immediate effect. In a separate announcement the Company reported that its TierraFilm(TM) Backlit range of environmentally friendly print products have been tested and approved for use in the outdoor back lit advertising units owned by both JCDecaux and CBS Outdoor. Both companies tested the products for suitability for their back-lit units in terms of print quality, robustness, light diffusion qualities and compatibility with posting infrastructure. On all these counts TierraFilm(TM) Backlit performed to their required standards and is now approved for use in these units. This follows on from the recent announcement of the successful approval by Hewlett Packard for use on all of their commercial printers.

Condor Gold (LON: CNR 164p / £50.04m)
Condor Gold, the gold and silver exploration company focused on an open pit and underground reserve on its 2.375m oz gold resource at La India Project in Nicaragua, has raised £4.25m before expenses through a private placing at a price of £1.60 each primarily with institutional investors. The net proceeds of the placing will be used to provide additional working capital, to implement a feasibility drill programme and exploration drill programme at La India and cover certain cash installment payments due in connection with the acquisition of the Espinito Mendoza and La Mojarra concessions as announced in August 2011 and October 2012, respectively.

Cosalt  (LON:CSLT 0.85p / £3.44m)
Further to the announcement on 2 October 2012, the Company has agreed a full and final settlement of £2m for all the cases presently brought by the Company against Calum Melville and Stuart Melville and companies associated with them. The settlement terms, are that GTC (a wholly owned subsidiary of Cosalt) will be paid £2m by Calum Melville, Stuart Melville, Denmore Investments Limited and C11 Limited. £1m is intended to be paid by 23 October 2012 and the balance will be paid quarterly over an 18 month time period. The settlement has been accepted without admission of liability, and as a consequence, the Court of Session in Edinburgh has put the case on hold for six months, to allow the implementation of the settlement.

Epistem Holdings (LON:EHP 535p/£47.43m)
Epistem announced preliminary results for the year to 30th June 2012 in which revenues dipped slightly to £5.6m (2011: £5.8m)  and a loss before tax of £726k (2011: £357k profit). Volatile trading conditions in healthcare and high levels of investment made in the Novel Therapies and Diagnostics (Genedrive(TM) ) programmes were the primary reasons given for the loss, though cash levels on the balance sheet remain healthy at £4.7m (2011: £3.6m) after having completed a £2.7m placing in December 2011. Personalised medicines revenues showed growth, whilst Contract Research Services remained stable. Looking forwards, the strengthening of divisional units and commercial advance of the Genedrive(TM) molecular diagnostic product are reasons for the Company to expect to significantly strengthen its financial performance over the coming year.

Fusion IP (LON:FIP 60p/ £43.70m)*
Fusion IP, the university IP commercialisation company that turns world class research into business, this morning announced its preliminary results for the twelve months ended 31 July 2012. In the period, Fusion made its first material exit event – sale of Simcyp to Certara for $32m, generating approximately $6.4m to Fusion, a 200-fold return on its original investment. Fusion also completed a £5m placing in November 2011 and the value of its portfolio increased to £19.8m (2011: £16.8m). It had cash and deposit balances totalling £5.9m (2011: £2.0m) at the period end. Fusion also created two new portfolio companies in the year (FaultCurrent Limited and Nanotether Discovery Science Limited) and £2.9m was invested in the portfolio companies by Fusion (2011: £1.6m) with £10.5m committed to the portfolio companies by third party investors (2011: £6.1m), a good result in challenging economic times. Post year end highlights included the portfolio company i2L’s acquisition of US based insect control testing services company, ICR Baltimore, from MGK. Commenting on these Preliminary Results, David Baynes, CEO of Fusion IP, said: “This has been another good year for the Group. The exit of Simcyp, which generated $6.4m for the Company, validates our commercialisation model and clearly demonstrates the tremendous potential of our university pipeline agreements. ”

LiDCO Group (LON:LID 15.38p/ £27.01m)
LiDCO Group, the cardiovascular monitoring company, has announced the new LiDCOrapid v2 incorporated with Unity software, which will be on preview at both the American Society of Anesthesia (ASA) annual meeting in Washington, US and the European Society of Intensive Care (ESICM) meeting in Lisbon, Portugal this week. The Unity software will allow the connection of two modules to the LiDCOrapid monitor platform to co-display Covidien’s depth of anesthesia and add the convenience of CNSystem’s continuous non-invasive blood pressure monitoring. This will address a growing requirement for monitoring solutions that are more comprehensive and can effectively replace multiple single parameter monitors.

Monitise (LON:MONI 37.75p/£431.37m)
AIM listed technology and services Company delivering mobile banking, payments and commerce networks worldwide, provided a trading update at its AGM at which it announced trading was in line with expectations having signed a MoU with Bank of China (Hong Kong) and a global alliance agreement with Cognizant during the first quarter. Integration of Clairmail has gone well and the Monitise Americas business also continues to perform. The agreement with Cognizant announced on 4th October 2012 saw the formation of the Mobile Money Alliance where both companies will work to help financial institutions embrace the mobile channel of interaction, and therefore lower the total cost of ownership, and drive newer revenue streams through enhanced mobile adoption. Last week, the Company announced the retirement of its CFO John Brougham, and the joining of Mike Keyworth, Chief Operating Officer, on the Board as Executive Director. Nick Taylor, Group Financial Director, will continue to run the finance function and will now provide direct support to the exec directors.

NetPlay TV (LON:NPT 12.25p / £35.06m)
NetPlay TV, the interactive gaming company, announced that the Company’s Q3 key performance indicators are significantly ahead of the same period in 2011. These figures follow what was a particularly strong Q2. The growth in new depositing and total depositing customers year on year has resulted in a 34 per cent increase in revenue versus Q3 2011. The Company is particularly encouraged by the uptake of its mobile and tablet offering, where revenues have increased by 107 per cent versus Q3 2011. Mobile and tablet gaming continues to be a key focus for the Company and during the period it has launched mobile slots games which will significantly enhance the existing TV roulette mobile offering. The Directors are pleased with this continued strong performance and are confident of meeting full year market expectations.

New World Oil and Gas (LON:NEW 10.12p/£25.97m)
New World Oil and Gas, an oil and gas operating company focussed on Belize and Denmark announces that the Belize Ministry of Energy, Science & Technology and Public Utilities has formally approved the assignment of a further 10 percent working interest in the Blue Creek Project located in the producing Petén Basin in Northwest Belize to New World’s wholly owned subsidiary, New World Oil and Gas (Belize) Ltd. The assignment, which was approved following the acquisition of an additional 43 line km of 2-D seismic data, as detailed in the Interim Statement of 28 September 2012, brings the Company’s total working interest in the Project to 35 percent. Under the terms of the Farm-Out Agreement, originally announced on 16 June 2011 and amended in February 2012 and May 2012, the company can earn up to a 100 percent working interest in the Project by achieving various milestones, including a three-phase 2-D seismic acquisition programme totalling 231 line kilometres and an exploration drilling programme. With the seismic programme completed, drilling has just commenced on the B Crest Prospect, which will be drilled to a total depth of 7,000ft into the mid cretaceous Yalbac 2 Formation, with results expected by the year-end.

Omega Diagnostics Group (LON:ODX 14.62p/£12.46m)
Omega Diagnostics Group, the medical diagnostics company focused on allergy, food intolerance and infectious disease, provided a trading update in advance of releasing its interim results on Wednesday 21st November 2012. The Company expects revenue to be in line with last year (at £5.53m), with food intolerance revenue up by 15 per cent to £2.12m, though allergy and autoimmune revenue down by 11 per cent £2.03m and infectious disease/other revenue down by 2 per cent to £1.38m. The uncertainty around reimbursement in Germany in allergy and autoimmune is still continuing and has partly affected sales during the period. Of particular note in the update was the reference to the IDS-iSYS system, where a final phase of building robustness into the combined reagent instrument system, and a lack of availability of patient serum samples has resulted in longer lead times in providing enough material for optimisation and which could result in up to nine additional months being added to the planned launch date for a panel of 40-50 tests, taking it to December 2013.

One Media Publishing Group (LON:OMPP 3.95p/£2.16m)*
Media consolidators and acquirers, One Media Publishing, has changed its name to One Media IP Group Plc. This decision was taken by shareholders at its General Meeting on 12th October 2012. The Company’s business covers the digital sale of over 170,000 music tracks, 4,000 hours of audio visual content as well as rights to synchronise its catalogue for film, TV, programmes and games, newspaper cover mounts, greeting cards and spoken word books. As such, the group continues to develop its intellectual property in symbiotic businesses. The change of name from One Media publishing to One Media IP reflects this evolution. As the company develops, it intends to focus on the acquisition of further intellectual property which not only includes audio-visual content but also new and established brands which can be monetised both digitally and physically.

Orosur Mining (LON:OMI 43.75p / £34.20m)
Orosur Mining announced results for their first fiscal quarter ended August 31, 2012. Production for the quarter was 15,451 ounces of gold, which is 23.7 per cent higher than the corresponding quarter of the previous year.  404,997 tonnes of ore were milled, at an average grade of 1.29 grammes per tonne of gold, with a recovery of 91.8 per cent. The Company is making good progress with the ramp at Arenal Deeps, which is key to their development. Since August, Orosur have taken over all development operations from the contractor, and progress has been accelerated as a result. Cash operating costs were US$ 1,094 per ounce. While this is higher than the target for the full year of US$ 975 per ounce, it is in line with budget for the quarter. Revenue of US$ 26.3m (US$ 21.0m), with realised gold price of $US 1,598 (US$ 1,612/oz Q1 2011/12) led to net profit after tax for the quarter of US$ 2.3m (US$ 4.4m Q1 2011/12). Cash balance at the quarter end was US$ 7.2m (US$ 20.3m Q1 2011/12) and debt was US$ 6.3m (US$ 3.8m Q1 2011/12).

Oxford Biomedica (LON:OXB 2.55P/ £35.91m)
The leading gene-based biopharmaceutical company announced that it plans to close the Phase II study in the United States to assess the activity of TroVax(R) (MVA-5T4) in patients with progressive hormone refractory prostate cancer (HRPC). TroVax(R) continues to have an active Phase II development programme in other indications led by academic collaborators in the UK. As previously announced, Oxford BioMedica initiated a randomised, open-label Phase II study in patients with metastatic HRPC in September 2010. Since then, the prostate cancer treatment landscape in the US has changed with new products available and other clinical trials targeting the same indication. As such, competition for suitable patients with HRPC has been high and recruitment into the study has been much slower than originally anticipated with 26 patients recruited to date. Whilst early data from this study are encouraging, the Board has made a strategic decision to close the US trial in order to focus on investigator-led Phase II studies, currently in the UK. Initial data from the study indicates a trend towards increased time to disease progression in patients who received TroVax(R) plus chemotherapy drug docetaxel versus those who received docetaxel alone; this data validates the observation that Oxford BioMedica’s pre-treatment biomarker can identify patients most likely to benefit from treatment with TroVax(R); and as with prior studies, HRPC patients with a favourable biomarker profile mounted stronger 5T4 immune responses. Furthermore, the biomarker score was associated with the time to disease progression in patients treated with TroVax(R) plus docetaxel. In July 2012, Oxford BioMedica’s partners at Cardiff University, Wales (UK) initiated a Phase II trial to assess the safety and immunological activity of TroVax(R) in patients with inoperable metastatic colorectal cancer. The Company expects two further investigator-led Phase II studies in mesothelioma and ovarian cancer to be initiated in the UK by academic collaborators in Q4 2012. Securing a development or financial partner for TroVax(R)’s future late-stage development remains a key strategic priority for the Company and discussions with interested parties are ongoing.

Oxus Gold (LON: OXS 2.22p/ £9.32m)
Oxus Gold, which has a 50 per cent stake in the Amantaytau Goldfields JV (AGF) located in the Kyzylkum region of Uzbekistan, has raised net proceeds of £406,917 by drawing down on it its Equity Financing Facility (EFF) with Darwin Strategic Ltd., a majority owned subsidiary of Henderson Global Investors Alphagen Volantis Fund. Under the terms of the EFF agreement, the Company has today issued 17.17m new ordinary shares at a gross price of 2.48p per share. The drawn down on the EFF is the first undertaken by the Company and the gross price per share represents a premium of 11.7 per cent to the closing mid-market price on 8 October 2012, the date prior to this announcement. AGF is situated on one of the world’s largest areas of gold endowment, the Tien Shan belt.

Plexus Holdings (LON:POS 168.5p / £139.43m)
Plexus Holdings, the oil and gas engineering services business and owner of the proprietary POS-GRIP(R) friction-grip method of wellhead engineering, has announced its preliminary results for the year ending 30th June 2012. It has recorded revenue of £19.71m (2011:£15.42m), a 96.8% increase in profit before tax to £3.09m (2011: £1.57m) and a 33% increase in EBITDA to £6.24m (2011: £4.69m). Chief Executive of the Company, Ben van Bilderbeek said: “I am pleased to report an excellent set of financial results for the year which include a record performance in terms of revenues, margin and profitability. Such strong on-going progress means that I am delighted that the Board proposes a 16.3% increase in the final dividend of 0.5p per share for the year ended 30 June 2012, which will be submitted for approval at the Annual General Meeting. The firm also announced that it has secured a £1m contract to supply its POS-GRIP technology wellhead equipment to new customer Lotos Exploration & Production Norge AS, a Norwegian subsidiary of the Polish oil and gas major Grupa Lotos. The contract is for a two year period and can be extended for an additional year. Revenues are due to commence November 2012. The exploration drilling programme will utilise Plexus’ high pressure high temperature (HPHT) 18-3/4 wellhead equipment and casing support equipment, for the Skagen well. Lotos is a new customer for Plexus and further strengthens the Company’s position in the region. The contract win follows on from a successful multi-well campaign with other Norwegian oil and gas companies signed on 29 March 2012.

Scancell Holdings (LON:SCLP 53.5p/£104.04m)
Developer of therapeutic cancer vaccines, Scancell, announced results for the year ending 30 April 2012. As a result of the net income of £2,487, 122 from the sale of the antibody portfolio, the Group made a profit for the year of £557,058, up from a loss of £1,649,255 in 2011. The Group comments that the increase in development costs in the year reflects the additional patient recruitment in the clinical trials and completion of milestones resulting in payments being made to the Clinical Research Organisation which runs the trials. The reduction in administrative expenses is largely as a result of the non-recurring professional expenses incurred in the prior year as the Group moved from PLUS to AIM. Additionally, steady progress has been made with Scancell’s vaccine, SCIB1; recruitment to Phase 1 of the clinical trial was completed in April 2012 and Phase 2 is on schedule to be completed by the end of 2012 assuming recruitment continues at the current pace with 9 of the planned 13 patients recruited since May 2012 and additional patients being screened. On 15th August 2012, Scancell announced the development of a new platform technology, ModitopeÔ, which stimulates the production of killer CD4 T cells with powerful anti-tumour activity. The directors believe that this new discovery could have a profound effect on the way that cancer vaccines are developed. As a result, the board is actively evaluating its strategic options for this new technology platform and will be consulting with key shareholders in this regard.

Software Radio Technology (LON:SRT 25.62p/£29.66m)
SRT provided a half year trading update ahead of interim results which are being released on 20th November 2012. Revenues are expected to be in the region of £3.5m, with profit after tax of £0.1m. As at 30 September 2012, cash balances of £1.5m sit on the balance sheet, and the Company’s current forward order book is £3.2m. Looking ahead, the Search and Rescue Transponder (SART) and Aids to Navigation (AtoN) products are nearing completion with first deliveries of the former in December and of the latter in the first quarter of 2013.  During the first half the Identifier entered volume production and since then the Company has shipped orders of approximately $2m, with a further $1.8m scheduled to ship before 31 December 2012. These Identifiers are destined for Mexico and the Company has been informed that the initial order addresses approximately 20 per cent of the boats affected by a mandate in place and the balance is expected to be required during 2013 and 2014. The Company also announced the shipping of GLONASS enabled and approved AIS products to its partner, Transas Navigator in Russia (and that it has received a further order for $350,000 of GLONASS-enabled Class B products) with total orders of $1.6m for GLONASS AIS products since the announcement of the national AIS mandate in Russia in November 2011.

Summit Corporation (LON:SUMM 4.62p/£16.38m)*
UK drug Discovery Company has announced top-line results from a phase 1 clinical trial of SMT C1100 for the treatment of Duchenne Muscular Dystrophy (DMD), a fatal muscle wasting disease for which there is currently no cure. SMT C1100, an oral small molecule, is a potential disease modifying drug that works to increase or upregulate the amount of naturally occurring protein called utrophin. The phase 1 dose-escalating trial was conducted in healthy volunteers and evaluated a new aqueous formulation of SMT C1100.  The trial met its primary endpoints with results showing the formulation to be safe and well-tolerated at all doses. Importantly, the new formulation also demonstrated improved levels of bioavailability (absorption) of the new drug that were above those anticipated to be needed to achieve clinical efficacy. These results are strongly supportive for the progression of SMT C1100 into patient clinical trials.

Sunkar Resources (LON: SKR 3.75p / £6.25m)
Sunkar Resources, which is focused on a phosphate rock mine in Aktobe Oblast, North West Kazakhstan, has signed an earth moving contract for its idle equipment with a general contractor that is building a new railway line in Western Kazakhstan. The value of the contract is KZT 1.2bn (US$ 8.1 m). The Company expects to receive a prepayment amounting to 30 per cent of the total contract value before the end of this year. The management believes the revenue from this contract will make a significant contribution to the working capital of the Company and will help to retain its core qualified personnel for next year’s mining season.  The Company has also announced that the Ministry of Industry and New Technologies has granted a waiver of the Republic of Kazakhstan’s pre-emptive right to acquire the ordinary shares of the Company, following the investment by Sun Avenue and Partners Corp. announced on 23 December 2011, as required by Kazakhstan’s Subsoil Use Law. The Sun Avenue investment was structured as convertible loan notes, so that the Company could receive the US$12.8m investment from Sun Avenue in advance of the waiver being received, which would then convert into a total of 174.5m ordinary shares, representing 51 per cent. of the issued share capital of the Company. Prior to the issuance of the new Shares, the Company is required to list on the Kazakhstan Stock Exchange and to receive permission from the National Bank of Kazakhstan to issue the new shares. Management expects to meet both conditions before the end of this year.

Surgical Innovations Group (LON:SUN 7.75p/ £31.24m)
The designer and manufacturer of creative solutions for minimally invasive surgery announced a successful ISHA (International Society of Hip Arthroscopy) exhibition last week in Boston, MA where the Company’s pre-production hip arthroscopy products were well-received by surgeons from across the globe. The Company said it was encouraging to see how its portfolio of laparoscopic instrumentation can successfully transfer to the arthroscopy market giving surgeons improved access, safety and visualisation during surgical procedures. Graham Bowland, CEO of SI said: “We believe the technology transfer from our laparoscopic instrumentation into hip arthroscopy is well-placed to overcome the challenges hip arthroscopy specialists are facing, and with our in-house design and manufacture teams, SI can rapidly bring innovative products through from concept to ultimate clinical use. SI is proud to be a part of this exciting new surgical discipline.”

Tracsis (LON:TRCS 131.5p/£32.66m)
Tracsis, the developer and consolidator of resource optimisation, data capture and reporting technologies to the transport industry, has announced a strengthening of its Board by the promotion of Andy Whawell to Director of Infrastructure Services and Steve Brown to Business Development Director as part of the Company’s drive forwards in the years to come. Andy joined as part of the acquired MPEC Technology business where he was managing director the business, whilst Steve joined as part of the acquisition of RWA Rail in 2008. Tracsis as a business provides the transportation industry with tools to control and optimise critical aspects of resource optimisation for cost control and efficiency improvement. With application software, embedded software and professional services offerings, the Company counts the majority of UK railway operators as its clients, including Network Rail, Virgin Group, Arriva and First Group, as well as operators in Europe and Australia. With this strengthening of the management team, the Company looks ahead to developing its business.

Triple Plate Junction   (LON:TPJ 1.32p / £4.89m)
Triple Plate Junction (TPJ) announced that, pursuant to its broader strategy to withdraw from its non-core Vietnam assets, it has entered into an exclusive option agreement to sell the entire issued share capital of Triple Plate Junction Limited (TPJL) to Bill Howell for the consideration of £1.  The Company’s subsidiary Triple Plate Junction (South Pacific) Limited is the parent company of TPJL which holds a 70 per cent interest in the joint venture project under a mineral exploration licence covering an area of 27km(2) at Pu Sam Cap, Lai Chau Province, Vietnam. The Option Agreement is conditional upon Bill Howell entering into an indemnity, in a form acceptable to TPJ, covering the costs and expenses incurred by TPJ or TPJL from 15 September 2012 for withdrawing from Vietnam; and TPJ and Bill Howell entering into a contract for the grant to TPJ of a 10 per cent undilutable carried interest in the Vietnam Licence through to the point of commencement of commercial production of a mine at the project. Subject to the satisfaction of these conditions, the above detailed option may be exercised any time at Bill Howell’s discretion before 10 December 2012.

Verona Pharma (LON:VRP 4.5p/ £13.82m)
Verona Pharma presented data at the International Severe Asthma Forum in Gothenburg demonstrating that the novel inhaled medicine RPL554 is well tolerated and produces a pronounced bronchodilator response in subjects with asthma. The oral presentation is the first release of full data from the original Phase I/IIa study announced in September 2009. RPL554 is a novel long acting bronchodilator and anti-inflammatory drug that acts by simultaneously inhibiting both phosphodiesterase (PDE) 3 and 4. Verona Pharma is investigating its use for the treatment of respiratory diseases including asthma and chronic obstructive pulmonary disease (COPD). In patients with mild asthma, a rapid, potent and long-lasting bronchodilator response was produced. The maximum bronchodilator effect appeared at least comparable to published values of inhaled salbutamol. RPL554 has the potential to become a first-in-class bronchodilator for airways obstruction.

YouGov (LON:YOU 77.5p/£75.29m)
Online research provider, YouGov, has posted a 5 percent rise in profits before tax, with an increase to £6.1m for the year. The company reported total revenue rises of 4 percent up to £58.1m, while like-for-like revenue increased by 9 per cent. The German markets rebounded according to the firm, which said profits doubled to £0.6m on revenues of £9.4m, while the newly opened French version of the research programme has achieved responded levels of 75,000. Growth of 19 per cent was reported in the Middle East, although profits and revenues fell by 31 percent and 20 percent respectively. YouGov’s chief executive Stephen Shakespeare, said: “We have continued to develop and invest in our growing portfolio of data products and services and increase revenue. This has helped to drive the momentum in our custom and data business, particularly in the US and UK.” The organisation said that, looking forward, it will offer its clients a platform to gather marketing data that can be used for a wide variety of campaigns. Geographical expansion and growth of the firm’s products is also key to development of the company. Mr. Shakespeare added: “We believe we are building a company that will be among the global leaders of the future.”

*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.

10 October 2012

This week: Only the Best for GRL, NEW funds for Oil & Gas, NETD provides new dimension to Finnair.

Over the last week to Friday, the FTSE 100 increased by 130 points to 5,870 points, whilst the AIM All Share closed where it opened the week at 706 points. News included both the UK and Eurozone holding interest rates at 0.5 per cent and 0.75 per cent respectively, whilst the UK’s trade deficit more than doubled in August to £4.2bn (from £1.7bn in July). The week ahead sees BRC retail sales, RICS housing survey, and Construction output data all being announced together with the IMF world economic outlook.

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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.

ANCR Final results, DOTD Final results, EDL Positive Drill results, FBT Repeat order, FIP Portfolio Company makes acquisition, GHH Trading update, GRL Directorate change, IVO Circassia initiates phase III, LRM New contract and trading update, MARL and Condor Resources, MWA High Grade Nickel Mineralisation at Trojan, NETD New contract, NW Placing and exercise of warrants, NYO Mineral Resource Update, POS £1.15M Contract & Statement,  PGR Sample Results, SID Trading update, SGZ Drilling Report, STI Improved Project Economics, TCN Pre Close update, UTH Final results, XEN patents granted.

Animalcare Group (LON:ANCR 129p/£26.73m)
A leading supplier of veterinary medicines announced final results for the year ended 30 June 2012. Revenues from continuing operations were down 8.2 per cent to £10.9m (2011: £11.8m), whilst pretax profit for the year narrowed to £1m (2011: £2.9m). Cash on the balance sheet stood at £2.3m compared to £1.18m in 2011. Difficult trading conditions have marked during the period, though the Company has launched five new generic veterinary medicines during the year. Further, the Company is looking to launch four new products during the current financial year and plans to expand its presence in Europe and North America as part of its overall growth strategy.

Atlantic Coal (LON:ATC 0.31p / £11.99m)
Atlantic Coal, the anthracite coal mining company operating in Pennsylvania USA, announced a positive production update for the three months ended 30 September 2012, from its Stockton mine located near Hazleton, PA.  There was a 130 per cent increase in clean coal production year on year to achieve a record production of 44,633 tons (Q3 2011: 19,424) and a  38 per cent increase in clean coal sold year on year to 33,336 tons (Q3 2011: 24,111). The average sales price realised was US$148.49 (Q3 2011: US$146.98), evidence of a continuation of strong national demand for high quality anthracite. In addition, Atlantic has completed reclamation work on nearly 1,000 acres of the former Gowen Mine. This is further good news for the Company, producing environmental improvements and representing the completion of a major programme of expenditure.

Ceres Power Holdings (LON:CWR 2.15p / £1.85m)
Following recent announcements regarding Ceres Power’s funding requirements, the Company announced that despite extensive efforts it had been unsuccessful in securing sufficient funding for the business going forward. The Company will continue to explore all strategic options including a sale of the business, cancellation of the listing and in the absence of any alternative proposals commencement of an orderly wind down of the business. A further announcement will be made in due course.

Chaarat Gold (LON:CGH 21.5p/£53.85m)
Chaarat Gold, the gold exploration and development company operating in the Kyrgyz Republic, has announced positive results from its ongoing drilling programme in the Tulkubash Zone in the north west of the country. The Tulkubash zone forms part of the Chaarat Gold Project. These results confirm the potential to substantially increase the size of the open pit at Tulkubash and more than double initial plant throughput to 2,500tpd. This was first identified on the basis of the 2011 drilling results. These results also endorse an increase in strike length of the deposit and would allow the Company to reduce the strip ratio during the early years of operation.

Conroy Gold and Natural Resources (LON:CGNR 1.2p/£3.24m)*
The gold exploration and development company focused on Ireland announced the discovery of a series of further large gold-in-soil targets within its Slieve Glah licence areas in County Cavan following a detailed gold-in-soil survey. Two new targets, each over 3km in length, were discovered. In addition the assay results of the survey, which comprised over 900 soil samples, extended the surface area of the two known gold targets at Slieve Glah by over 1km (0.6 miles), both now also totalling over 3km (1.9 miles) in length. Anomalous gold values returned from the assay analysis ranged from 4 ppb (parts per billion) Auto over 300ppb Au. In one of the newly discovered targets a highly anomalous area has been identified which measures approximately 1,000 metres in length by 500 metres in width, trending Northwest to Southeast. The area has been defined by over a hundred soil samples collected on a 100m grid. Assay analysis returned maximum gold values of up to 140ppb Au with over 30 per cent. of the soil samples returning elevated gold values of greater than 10ppb Au. Gold has previously been confirmed by the Company in bedrock in the Slieve Glah target area through trenching and diamond core drilling. The new Slieve Glah gold targets lie at the southern end of the 50km (30 miles) gold trend discovered by the Company, which stretches from Co. Armagh in Northern Ireland to Co. Cavan in the Republic of Ireland, and are located approximately 40km (25 miles) south of the Clontibret Gold Project where on 20 per cent of that target a gold mine is planned.

dotDigital Group (LON:DOTD  12.88p/£35.45m)
The leading provider of intuitive Software as a Service (SaaS) and managed services to digital marketing professionals, this morning announced Final Results for the year ended 30 June 2012. Turnover & profits were ahead of market expectations; turnover was up 34 per cent to £12m (2011: £9.0m), profit before tax and exceptional items increased 25 per cent to £2.9 (2011: £2.3m) and dotDigital reported continued strong cash generation with cash balances of £4m at the year end. There was a continued investment in upgrading the IT hosting infrastructure and further significant product development. dotMailer continues to be a significant source of revenue growth in the year with 1,813  new clients being added including an  increased number “corporate” client wins. dotSurvey the new online survey tool only launched in May now has over 500 paying clients and nearly 2,500 trial users. Early results from international expansion are encouraging. dotDigital also announced today the appointment of a New Non-Executive Director, Simone Barratt. Ms Barratt has a wealth of relevant sector experience having been managing director of e-Dialog UK, an eBay group company, for ten years and more recently President of e-Dialog globally. The Company’s three key strategic goals for 2012/13 are to further enhance the dotMailer platform to ensure it is capable of competing on the world stage; increase the overall proportion of recurring revenues in the business and specifically to increase the level of longer term contracted revenues across the dotMailer user base; and expand their global footprint through strategic partnerships and the opening of sales offices in selected international locations. Having carefully examined various acquisition opportunities in the year the board are firmly of the view that an organic growth strategy which focuses on building long term recurring contracted revenue will deliver more certainty over growth in long term shareholder value. Although the Board anticipates continued healthy top line growth, it also anticipates that these planned changes will result in a very modest reduction in the growth of  2012/13 revenue compared to market expectations, although the board is confident that both revenues and profits for the 2013/14 financial year will benefit from this strategy and return to levels above current expectations.

Edenville Energy (LON:EDL 0.2p/£8.67m)
Edenville Energy, the coal focused African energy exploration and development company, has received the drill core float and sink assay results from drillholes MK12-030, -031, -033 and -034; collared at the Mkomolo deposit on the Rukwa Coalfield project in south western Tanzania. Drilling intersections indicate improved coal grades and confidence within the April 2012 resource drilling area. These results have confirmed both thermal coal grades and the continuity of coal measures in an area to the north of the currently defined resource of 39m tonnes.  Drilling has commenced at Muze with the arrival of a second drill rig which will provide further impetus to the Company’s programme at Rukwa.

Forbidden Technologies (LON:FBT 23.00p / £20.02m)
Forbidden Technologies, owner and developer of the ‘FORscene’ cloud-based post-production platform, announced that post house Envy has installed a third FORscene Server system at its Windmill Street site in Central London. As one of the UK’s largest post-production houses, Envy has the capacity to handle the world’s largest productions, and already 50 of its 100 offline edit suites have access to FORscene. Envy continues to work closely with Forbidden to ensure client satisfaction and this further installation will make it even easier for new productions to upload content onto the FORscene platform. Stephen Streater, CEO of Forbidden Technologies, said: “The outstanding level of care which Envy provides its clients mirrors Forbidden’s approach. FORscene’s reputation continues to be enhanced as leading industry professionals adopt and extend their use of the FORscene platform for their post-production needs.”

Fusion IP (LON:FIP 60.00p /£43.70m)*
The university commercialisation company that turns university research into business announced that its Cardiff University spin-out company, i2LResearch Ltd (i2L), has acquired Baltimore based ICR Inc. (ICR), which provides efficacy testing and regulatory consulting services to the insect control product industry. The Company currently sells its products into more than sixty countries globally and is a world leader in the development and distribution of the botanical insecticide, Pyrethrin, as well as a wide range of synthetic chemistries. The acquisition, details of which are undisclosed, creates a significant Contract Research Organization (CRO) that will enable i2L to expand its European based agrochemicals, biocide and regulatory operations into the USA. Fusion owns a 31 per cent equity stake in i2L.

Goldstone (LON:GRL 3.35p / £10.72m)
GoldStone, the gold exploration company focused in West and Central Africa, has announced the appointment of Jonathan Best as a Non-Executive Director, with immediate effect. Jonathan has been involved in the mining industry for over 40 years in operational, financial, executive and non-executive capacities. From 1997 to 2005, he was an Executive Director and Chief Financial Officer of AngloGold Ashanti Limited (LON:AGD 2125p / £8.1bn) and is currently a non-executive director of Anglogold Ashanti Holdings Plc, a company which primarily holds the non-South African interests of the Anglogold Ashanti group. In addition to a number of other appointments, Jonathan is an independent non-executive director of Polymetal International plc (LON:POLY 1,156p/£4.46bn), a Russian-based mining company listed on the London Stock Exchange, and is Chairman of the audit committee and a member of the remuneration committee.

Gooch and Housego (LON:GHH 442.5p/£96.91m)
The specialist manufacturer of optical components & systems provided a full year trading update in which it stated that profit for the year to 30 September 2012 is expected to be in line with market expectations. The Company has made progress in moving the business from a predominantly components supplier focussed on the industrial sector to that of a provider of advanced photonic solutions at the sub-systems level to a broader customer base encompassing the aerospace & defence and life sciences markets. In the aerospace & defence in particular, a number of previously delayed orders were received late and the health sciences sector has continued to be an important source of revenues for the Company.

Imperial Innovations (LON:IVO 312p/ £310.91m)
Imperial Innovations, the technology commercialisation and investment company, announces that its portfolio company, Circassia has initiated a pivotal large-scale Phase III clinical study of its ToleroMune(R) cat allergy treatment. The Phase III multinational study will test safety and efficacy of the treatment in approximately 1,200 subjects from the USA, Canada and Europe. It follows positive phase II results published last month, which showed that patients had a significantly greater reduction in symptoms compared with placebo one year after the start of the study, despite only receiving a four-dose course of treatment over 12 weeks.

Lombard Risk (LON:LRM 11.00p / £25.50m)
Lombard Risk Management, the leading global provider of integrated collateral management, liquidity and regulatory reporting and compliance solutions for the financial services industry, announced that it has signed a substantial contract to supply its Dodd-Frank and EMIR (European Market Infrastructure Regulation) transactional reporting products to a major European bank. This was announced following the end of the first half year to 30 September 2012. No revenue from this contract has been recognised in the half year results. The Company continues to see strong interest across its product range and is in discussions with a number of major financial institutions in the UK and abroad. The performance of the company gives the board reason to believe that the company will meet market expectations for the year ending 31 March 2013.

Mariana Resources (LON:MARL 5.38p / £12.40m)
Mariana Resources, the exploration and development company focused in southern Argentina and Chile, announced that it has signed a Letter of Intent (LOI) with Condor Resources Inc.  (TSX-V: CN)   Under  the terms, Mariana has  the right to acquire a 51 per cent interest in each  property  within  four  years  by  incurring  direct  exploration costs of US$12,500,000, and making cash and/or share equivalent payments to Condor for a cumulative sum of US$2,500,000  for each property.   The LOI includes a due diligence provision to be completed by Mariana by October 17, 2012, and parties have agreed to replace the LOI with a Definitive Agreement containing general industry standard terms and conditions.

Mwana (LON:MWA 4.92p / £54.82m)
Mwana, a multi-commodity resources company with operations and exploration activities covering gold, nickel and other base metals, and diamonds in Zimbabwe, the DRC and South Africa, has announced a number of significant intersections of high grade nickel from the resource drilling programme being carried out at its Zimbabwean subsidiary, Bindura Nickel Corporation’s (BNC) Trojan nickel mine. These are the first drilling results from Trojan since the successful recapitalisation and restructuring of BNC was completed last month, with the objective of producing concentrate for sale by Q2 2013. BNC has an off take agreement with Glencore International (LON:GLEN 336.5p / £23.2bn) who will buy all the nickel concentrate produced by Trojan.

Net Dimensions (LON:NETD 41.5p/ £10.51m)
Learning management software providers, NetDimensions has announced a new contract with Finnair Flight Academy. NetDimensions has been contracted, along with its reseller Peak Pacific to provide Finnair with an integrated learning solutions based on the NetDimensions Learning Product. The contract will now enable Finnair to create and maintain training solutions and records under a single Learning Management System, eliminating the need for multiple platforms, thus reducing overall costs. The regulatory nature of the aviation industry makes the provision of accurate training records of the upmost importance. In other news, the technology and innovation Company, Indra, has successfully implemented NetDimensions Talent Suite to 22,500 of its 40,000 employees operating in over 100 countries. Jay Shaw, Managing Director & CEO of NetDimensions, commented: “Indra joining our global reseller network, as the result of it having experienced the NetDimensions Talent Suite first-hand, is a significant endorsement of the value proposition of our offerings.”

New World Oil and Gas (LON:NEW 10.5p/£26.94m)
New World Oil and Gas, the oil and gas operating, exploration and development company focussed on Belize and Denmark, has raised £8.6m gross at a price of 9 pence per share, a placing discount of 14% on yesterday’s share price. The proceeds of the placing will be used to fund the drilling of a third well at the company’s Blue Creek Project, located in the productive Petén Basin in Northwest Belize, the planned 3-D seismic Programme on the company’s Danica Jutland project in Denmark and for general working capital purposes. The well is set to target Prospect A which RPS Energy has given P50 volumetrics of 124m barrels of oil, on a 100 percent working interest basis.

Nyota Minerals (LON:NYO 4.98p/ £32.87m)
Nyota, the gold exploration and development Company in East Africa, has announced a new mineral resource estimate for its Tulu Kapi Project in Ethiopia. The new mineral resource incorporates the results from the in-fill drill programme completed during the summer of 2012 as well as being calculated using a new cut-off grade that reflects the indicative economic parameters to be used for the Definitive Feasibility Study (DFS). The new total in-situ estimate (indicated & inferred) for Tulu Kapi is 24.90m tonnes @ 2.34g/t gold containing 1,872,000 ounces of gold using a cut-off grade of 0.3g/t gold. The in-fill drill programme was designed specifically to convert inferred ounces to indicated ounces. This resulted in a like-for-like increase of 30 per cent to 1,079,000 ounces of indicated gold.

Plexus Holdings (LON:POS 150.00p / £124.12)
Plexus Holdings, the owner of the proprietary POS-GRIP(R) friction-grip method of wellhead engineering, announced it has received Purchase Orders worth £1.15m from Talisman Energy Inc. (TSX:TLM;NYSE:TLM), to supply its proprietary POS-GRIP High Pressure/High Temperature and standard pressure POS-GRIP wellhead and mudline suspension equipment for two wells in the Norwegian North Sea. Revenue from this order is expected to commence immediately. The Company expects to receive further orders for future drilling from the rig in due course. Trading since the Plexus’s Interim Results in March 2012, has exceeded management’s expectations, particularly for its high pressure/ high temperature wellhead business activities where demand continues to show strong momentum with further contracts having been secured with both existing and new major international oil and gas operators across the world. Full year 2012 earnings, are now expected to be ahead of market expectations with after tax profits and earnings per share materially in excess of current analysts’ forecasts.  Plexus’ management are excited with the business outlook for the remainder of 2012 and into 2013 and look forward to reporting a more detailed summary and general overview on the Company’s current trading and future prospects when the Annual Results are announced.

Premier Gold (LON:PGR 0.47p / £3.21m)
Premier Gold, the Central Asia–focused gold exploration and development Company has received promising results from prospecting and soil analysis samples during the current exploration programme within the Cholokkaindy licence. Results indicate that the four previously identified prospects are now to be interpreted as part of a single mineralising system up to four kilometres long with significant gold in bedrock and gold soil anomalies over an area of five square kilometres. Chief Operating Office, Richard Nolan, has stated that the Company’s focus remains to drill Talbaital. With this year’s soil sampling complete, the results indicate more, newly identified targets to test. The Company has also begun discussions with the drilling contractor about a much larger drilling programme to begin in 2013.

Scotgold Resources (LON:SGZ 4.62p/ £9.08m)
Scotgold Resources, a mining exploration and development company focused principally on Scotland, has reported the final results from the recent drilling program at Cononish gold and silver project situated near Tyndrum in the Scottish Grampians. The drilling program was aimed at converting inferred resources to indicated resources in that part of the resource that will be mined in the early years of the mine life, thereby enhancing the debt capacity of the project. The results from this program will shortly be incorporated in an updated Resource Statement to be completed by Snowdens Mining Industry Consultants Ltd. The updated Resource Statement will form the basis for the definitive mining plan and the Cononish Project Development Study to be compiled by Australian Mining Consultants UK Ltd. The Company and RMB Resources, who have been mandated to provide a gold prepayment facility, will then be in a position to determine the optimum debt capacity of the project. It is anticipated that this work will be complete in early 2013 enabling project commencement in the second quarter of 2013 and first gold production in early 2014.

Silverdell (LON:SID 13.88p/£43.46m)
Silverdell, the Specialist Environmental Support Services group, provided a trading update for the year ended 30 September 2012 in which it stated that it expected an increase in revenues of more than 30 per cent to circa £78m, and that adjusted EBITDA is expected to be 46 per cent ahead of the previous year at around £6m. With large contracts being tendered for in Australia, Canada, the UK, and mainland Europe, Silverdell anticipates reporting an order book at the end of October in excess of £200m, with over 75 per cent of revenues scheduled to fall in 2013. The Company also announced that it will be paying a maiden dividend of between 0.15 pence and 0.2 pence per share.

Stratex International (LON:STI 4.62p/ £21.59m)
Stratex International, the exploration and development company focused on gold and base metals in Turkey, East Africa and West Africa, has announced positive results of an independent review of the feasibility study of the Inlice project 45 per cent owned by Stratex and 55 per cent by its Turkish partner NTF Insaat Ticaret Ltd. The review has indicated a significant improvement in project economics – all equity, post-tax IRR increased by 178 per cent based on US$1,397/oz gold and net present value increased by US$17.5m (10 per cent discounted) – by mining the deposit over a more appropriate, two-year period. This has been achieved at a higher capital cost of $25.9m largely as a result of increasing daily production from 1,000 to 2,000 tonnes.

Tricorn Group (LON:TCN 32p / £10.69m)
Tricorn Group the tube manipulation specialist gave a trading update for the six months ended 30 September 2012 ahead of entering its close period. The Group reported good progress through the first half with further improvements in operating margin and adjusted PBT when compared with the corresponding period last year. This has been achieved after absorbing costs associated with the initial start up of the China facility and against softer markets outside of aerospace.  There has been some softening of demand through the second quarter most notably within the transportation division. Inevitably the more cautious outlook expressed by some key customers has led to a degree of destocking through the period, with customers looking to lower inventory levels. Sales for the second half are anticipated to be at similar levels to the first 6 months and full year PBT is expected to be in line with market expectations.

Utilitywise (LON:UTW 78.5p/£48.53m)
Utilitywise, the utility cost management consultancy announced full year results for the year to 31 July 2012 in which it saw revenues increase by 25 per cent to £14.6m (2011: £11.7m) and profit before tax up by 23 per cent to £4.3m (2011: £3.5m). Having IPO’d back in June; the Company raised £6.9m at the time which helped the Company’s cash balance at year end to £8.2m (2011: £0.2m). The Company’s primary offerings are to corporate clients to help drive down their utility expenditures, making savings of up to 25 per cent. Apart from energy management, the Company also engages in energy procurement to provide reduced energy tariffs on both direct and channel partners’ bases. Having relocated the business to a flagship 40,000 square foot facility which provides sizeable infrastructure and a growing headcount which is expected to continue to increase, the Company continues to look out for acquisition opportunities to further sustain the businesses growth.

Xenetic Biosciences (LON:XEN 6.12p/£24.28m)
A bio-pharmaceutical company specialising in the development of high-value differentiated biological and vaccines and novel cancer drugs announced that it has successfully obtained the allowance of eight patent applications, two of which have issued as patents with the remaining six issuing shortly. Through these allowances, Xenetic is expanding the protection of its proprietary PolyXen® technology internationally. It is expected that each of the allowed patent applications will issue as a patent within the next few months. Scott Maguire, Chief Executive Officer of the Company commented: “As part of our strategy to build value in the world’s largest biotech market, the US, the combination of our US patents and clinical pipeline will be critical to achieve our goal of generating significant returns for shareholders.”

*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.

2 October 2012

This week: Golden results for Goldplat, Seeing provides insight and a striking update for Goals

Over the last week to Friday, the FTSE 100 fell by 100 points to 5,740 points, whilst the AIM All Share fell by 12 points to 714. News has been somewhat mixed with the UK economy having contracted by 0.4 per cent in the 2nd quarter (less than the 0.7 per cent expected) though the British Chamber of Commerce suggests 3rd quarter growth. US growth was also much weaker than previously estimated in the second quarter, and the worries in Spain continued. The week ahead sees Manufacturing PMI, Nationwide house price index, construction PMI and Services PMI all being announced in the UK, together with the interest rate decision.

If you would like to unsubscribe, please email with “unsubscribe me”.
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.

3LEG Corporate update, AOL Interim results, ALK Directorate change, ALL Trading update, CLTV Interim results, CLF Name change and new directors, CNR Interim Results, CSLT Litigation Update EDEN Half yearly report, FITB Interim Results, GDP Preliminary Results, GOAL Interim Results, IMM Cancer programme and interims, JUB Loan agreement, HAWK Final results, ORCP Unaudited interim results, OXP scale up of taste masked ibuprofen, PET Interim Statement, PLE Interims, POS £2m Contract, RNWH Trading update, SEE Preliminary results, SQZ 3D seismic acquisition, SVR New US HQ and Grant of Warrant, SHEP.PL Final results, SKR Half Yearly Report, SYM   Interim Statement, TEG Interims, UFG Final results, VIY  China Deal, SNCL Trading update

September saw some fund raising green shoots in the Micro Cap segment:
The largest raises came from the Clean Technology sector: Energetix (LON:EGX) announced that they had raised £12m, with an additional £2m available for existing shareholders to participate, to facilitate production and market entry of the Kingston microCHP boilers. Clean Air Power (LON:CAP) raised £3.35m to accelerate the development programme to push their Genesis EDGE system into the North American market.  Eco City Vehicles (LON:ECV)raised £1.75m to reduce debt and boost working capital.
In the resource sector Red Rock Resources (LON:RRR) raised £660k, 90 per cent of the raise came from their Joint Venture partner in Greenland North Atlantic Mining Associates.  Thor Mining (LON:THR) raised the Sterling equivalent of £385k from Australian high net worth clients, and Cambria Africa (LON:CMB) raised £860k, with Directors and the broker taking around 46 per cent of the deal between them.   Nostra Terra (LON:NTOG) raised £1.07m in total to support the development of their Chisholm trial prospect.
Goals Soccer Centres (LON:GOAL) raised £2.8m to provide additional balance sheet flexibility and Norish (LON:NSH), the food storage specialists, raised £385k to facilitate the reverse takeover by Townview Foods Ltd.
600 Group (LON:SIXH) raised £1.47m and re-negotiated a £3.64m bank facility to help with Working Capital. Manroy (LON:MAN), the defence contractor, raised £484k to finalise remaining approval requirements relating to their MUSA operation in the US.

3Legs Resources (LON:3LEG 42.87p / £36.35m)
3Legs Resources, an independent oil and gas group focused on the exploration and development of unconventional oil and gas, has reported that as expected, ConocoPhillips did not give notice to exercise its option to take a 70 per cent interest in the Company’s three eastern Baltic Basin concessions in northern Poland, prior to the expiry of the option on 30 September 2012. It is considering its options before engaging in any operations on its eastern concessions.  Operations on its western Baltic Basin concessions are proceeding as previously announced. Testing equipment has been mobilised to the Lebien location, where further testing is due to commence imminently on the Lebien LE-2H horizontal well.  Rig mobilisation for the Strzeszewo LE-1H vertical well is continuing and the well is expected to spud within the next week.

Alecto Minerals (LON:ALO 1.5P / £5.38m)
Alecto Minerals, the AIM listed multi-commodity exploration and development company, with projects in Ethiopia and Mauritania, announces its interim results for the six months ended 30 June 2012. The company has said that it believes the interim results for the period is in line with management expectations. They reported a pre tax loss increase to £0.50m from £0.46m in 2011.  Cash at June 30 increased to £1.57m from £1.32m in 2011 and there were no dividend declared or paid. A cornerstone investor has secured £1.47m to fund exploration. The weeks and months ahead will be marked by regular news flow as Alecto receives results and make evaluations based on these campaigns which are designed to build value on both a project and corporate level.

Alkane Energy (LON:ALK 20.25p / £20.42m)
Alkane Energy, the independent gas to power producer, has announced the appointment of Roger McDowell as Non-Executive Chairman with immediate effect, and replaces John Lander, who is retiring having served on the Board for eight years. Mr. McDowell, 57, is an experienced director of 30 years’ standing and currently holds non-executive positions at several listed companies including chairman of Avingtrans and Ultimate Finance Group and director of IS Solutions, Swallowfield and Augean.

Allocate Software (LON:ALL 79p / £50.51m)
Allocate Software, the leading provider of workforce and compliance optimisation solutions, provided a trading update for the first quarter, where it announced slower than anticipated new license sales as a result of delays in contracts closing. The pipeline for new business wins and licence renewals remains strong, though the timing will likely impact implementation and support revenues in the current quarter. Whilst the  portfolio of subscription-based product lines has been encouraging, with a number of these performing above management expectations, revenue is recognised over a period of time due to the nature of subscription sales and therefore not enough to offset the delays in contract sales. The Board now expects that first half revenues will be lower than its original expectations, albeit broadly in line with the first half of the last financial year, and EBITDA will be below the prior year first half comparable.

Cellcast (LON:CLTV 1.05p/£0.81m)
Cellcast, a provider of participatory television programming and interactive telephony technology for cross-platform digital entertainment, announced interim results for the six months to 30 June 2012, in which the Company posted a loss of £119,000 (H1 2011: profit before tax of £609,000) on the back of narrowed revenues (to £9.8m (H1 2011: £11.4m). The Company’s interests in Cellcast India were also diluted to 12 per cent as a result of a fund raise and partial sale of stake by Cellcast India in October 2011, with its financial position being impacted by the effects of new regulations reducing premium mobile tariffs applicable to Cellcast India’s core services. Cellcast India has delayed payments due under the Intellectual Property assignment agreement. The Company continues to invest in the development of products and services and focus efforts on identifying and developing new international markets.

Cluff Gold (LON:CLF 80.75P / £135.70m)
Cluff Gold, the dual AIM and TSX listed West African focused gold mining company, announced on 1st October 2012 that it has changed its name to Amara Mining plc. The Company also announces the resignation of three Non-Executive Directors as part of the Board’s review of its structure. These changes show signs of the company’s transition into a mid-tier gold producer, through the extension of production at the Kalsaka/Sega gold mine, which funds the progression of its pipeline projects, Baomahun and Yaoure, where the Company is completing a feasibility study and expanding the resource base respectively. The transition is also being seen in terms of leadership, with John McGloin’s appointment as Executive Chairman on 28 May 2012 and the resignation of Mr Nicholas Berry, Dr Bobby Danchin and Mr Ronald Winston, effective 30 September 2012.  From 1st October 2012, the Board will comprise of three Executive Directors and three Non-Executive Directors, a more appropriate number for a company of Amara Mining plc’s size. The new branding reflects the Company’s operational ethos across its assets. The word Amara is of African origin and means grace, eternal and immortal and the logo is a fern, which is a West African Adinkra (symbol) representing endurance and resourcefulness.

Cluff Natural Resources (LON:CNR 173.5P / £52.94m)
Led by natural resource entrepreneur Algy Cluff, Cluff Natural Resources, the investing company which focuses on investing in global oil & gas and mining assets has announced its maiden interim results for the four-month period from incorporation on 21 February 2012 and ended 30 June 2012. In May 2012, the company was listed on AIM successfully raising £3.75m at 5 pence per share. They have been actively evaluating natural resource assets in line with their strategy, to take advantage of the growing pressure to exploit new reserves and resources in order to satisfy increased global demand for commodities. Cluff Natural Resources believes there is a positive medium to long term outlook for general commodity prices and therefore recognise opportunities to create significant value for shareholders. The company reported a loss for the four-month period ended 30 June 2012 of £0.27m, but has a  healthy cash position of £3.16m and are confident that they are well positioned to deliver on the strategy of investing in highly prospective oil and gas and mining assets.

Cosalt (LON:CSLT 0.85p / £3.44m)
On 20 October 2010, the Company announced that an inventory check had revealed evidence of an unexpected stock shortfall in its Aberdeen based Offshore division and further investigation revealed a series of doubtful transactions involving a company, called Meapac Limited, which evidence suggests accounted for a substantial proportion of the shortfall. Subsequently, the Company has pursued a claim through the Scottish Courts against Calum Melville and Stuart Melville (previous employees of the Group) and companies associated with them for losses suffered by the Group as a consequence of an alleged fraud. Of all the money paid to Meapac as an alleged “supplier”, 95 per cent found its way almost immediately into Calum Melville’s bank account or the bank account of companies directly controlled by him. The trial has been adjourned until 2nd October. Meantime, the Court granted a decree in favour of GTC Group (a wholly owned subsidiary of Cosalt) against Meapac in the sum of £2.5m plus interest and expenses. Shortly before trial, the Company was approached by representatives of Calum and Stuart Melville with an offer to settle in advance of the court case being heard in public. While the Company has rejected all previous offers to settle, it has agreed in principle to accept the latest offer and heads of terms have been signed. Assuming a formal settlement is concluded, the case will be put on hold from Tuesday 2 October 2012 to allow implementation of the settlement. The terms which Calum Melville and Stuart Melville and their associated companies have agreed will also be disclosed on that date.

Eden Research (LON:EDEN 12.5p / £13.88m)
Eden Research, a specialist in green technologies for agriculture, has reported a narrower pretax loss for the six months ended June 30, adding that it has been talking to a number of potential licensees in areas such as food flavorings and cosmetics, as well as for further agrochemical products. Revenue for the period reduced to £8,000 compared to £15,000 in 2011. The pretax loss reduced to £1.58m from £2.22m in 2011. Cash at the bank reduced from £1.18m in 2011 to the current amount of £0.48m.

Fitbug (LON:FITB 1.62p / £2.74m)*
AIM traded provider of online personal health and well-being services announced its results for the six months ended 30 June 2012. The Company reported a pre-tax loss of £649,000 (2011: loss of £189,000) reflecting increased investment in new product and US market development and launched Fitbug Air – the world’s first Bluetooth Low Energy Fitbug activity tracker (post period end). New sales confirm the appeal of Fitbug capability in the Connected Health Market, and interest in new Games Framework. Fitbug has a strong pipeline of new business opportunities and 2013/14 revenue deals. During the period, a £1,000,000 Convertible loan from Kirsh Group subsidiary, on attractive terms, and £125,000 investment by directors significantly strengthened the Company’s financial position. Cash at 30 June 2012 was £1,136,000 (2011: £172,000).

Goldplat (LON:GDP 15.87P / £26.73m)
Goldplat the AIM listed gold producer announced its preliminary results for the year ended 30 June 2012. There was a record profit before tax of £5.24m which was a 52 per cent increase compared to £3.43m in 2011, in addition there was a 57 per cent increase in after tax profit. All three areas of the business contributed to the success and for the first time, the profits earned in Ghana exceeded those earned in South Africa.  There was a 52 per cent increase in the net cash position to £4.57m as at 30 June 2012 compared to £3.01m in 2011. Operating profits were £4.53m which increased by 48 per cent from 2011.  Goldplat remains market leaders in gold recovery in Africa and the gold production from Ghana and South Africa totalled 31,354 ounces with 17,762 ounces of gold attributed from Ghana and 13,592 ounces of gold from the South African operations. Basic earnings per share increased 30 per cent to 2.77p against 2.12p for 2011. The success from the operations has enabled Goldplat to recommend a maiden dividend of 0.6p per share, totalling £1.01m.

Goals Soccer Centres (LON:GOAL 117.5P / £57.13m)
Goals Soccer Centres is the leading player in the fast growing 5-a-side soccer market and currently operates in 43 centres in the UK, one in Los Angeles and has established a pipeline in excess of 40 sites. In the Interim results period, Goals has continued to experience like-for-like growth, with core football continuing to perform well, since the end of the half year despite the period including the London 2012 Olympics. Sales were £16.3m which was an increase of 11 per cent and like-for-like sales increased by 2 per cent, although the increased has slowed down compared to 3 per cent in 2011. Profit before tax fell to £1.6m compared to £4m in 2011 however adjusted profit before income tax increased 10 per cent to £4.4m (adjusted for the impact of the net exceptional cost of £2.8m). Adjusted diluted earnings per share were up 16 per cent to 6.6p (adjusted for the net of tax impact of the exceptional items) and an ordinary dividend was maintained at 0.675p per share. Net bank debt fell to £53.9m compared to £54.4m in 2011. The Company is exploring options to provide additional balance sheet flexibility and has received strong initial indications of support from a number of existing shareholders.

ImmuPharma (LON:IMM 67.5p / £55.03m)
ImmuPharma, the specialist drug discovery and development company, announced that its cancer programme IPP-204106 has begun further clinical trials with the next generation of “polyplexed Nucant”.  The first patients have started dosing in this new Phase I/II clinical trial. IPP-204106 has a novel mechanism of action aimed at preventing proliferation, inducing apoptosis and also controlling angiogenesis. This ‘polyplexed Nucant’ formulation has shown an impressive efficacy of about ten times over the previous Nucant version in pre-clinical cancer models and represents a newly discovered form using the previous Nucant version together with a specific excipient that forms micro/nano structures. IPP-204106 final results are available for the Phase I/IIa clinical trial where six out of the 14 patients had proven stabilisation with stabilisation lasting more than six months in two of the six patients. ImmuPharma also announced results for the six months ended 30 June 2012. LupuzorTM, the candidate for the treatment of lupus which has been granted approval by the US FDA to begin Phase III trials under Special Protocol Assessment with Fast Track designation, continues to be the subject of licensing discussions with a number of possible partners. The Company has a strong cash position of £10.1m and reported a basic and diluted loss per share of 2.17p and 2.17p respectively (30 June 2011: 2.59p and 2.59p).

Jubilant Energy (LON:JUB 15.75p/ £65.57m)
Jubilant Energy, the upstream oil and gas Company with assets in major proven and prolific hydrocarbon basins in India and Myanmar, has announced that its subsidiary, Jubilant Offshore Drilling Pvt. Ltd., has signed a Rupee Loan Agreement for a term loan facility of Rs 1,340 crores ($254m) with a consortium of banks, led by State Bank of India. The term loan facility is to be used towards funding the capital expenditure for the appraisal and development of KG Block, particularly development of Deen Dayal West and for the repayment of existing term loan facility of Rs 650 crores ($123m). The loan has a tenor of twelve years with repayment in quarterly installments commencing from 31 December, 2015.

Nighthawk (LON:HAWK 6.52p / £48.87m)
Nighthawk, the US focused shale oil development and production company, announced its final results for the year ended 30 June 2012. During the year ended 30 June 2012, Nighthawk undertook and completed significant changes in its strategy, asset base, shareholder and financial structure, and management team. Nighthawk is now focused on a single, large-scale, US shale oil development, the Jolly Ranch project in the Denver-Julesberg Basin in Colorado. In January 2012, the Company completed the acquisition of an additional 25 per cent working interest in the project from Running Foxes Petroleum taking Nighthawk’s total working interest to 75 per cent. The first stage of Nighthawk’s development plan for Jolly Ranch was to work-over 15 existing wells and re-evaluate their condition and potential for a recovery in oil production, which had fallen sharply during 2011 and was running at around 30 bbls/day. This work-over uncovered a significant number of problems both sub-surface and with top-side equipment. Whilst the operational problems have now been dealt with, they have impacted on the business in two other ways. First, an assessment of the potential from existing wells, relative to the historic costs expended on them, has resulted in further impairment charges for the year. Second, Nighthawk has raised significant claims on Running Foxes Petroleum, and is working closely with its US counsel to pursue its claims. All of the Group’s other projects have now been fully disposed of. At 30 June 2012, the Group held cash balances of $9.2m (FY2011: $2.0m).

Oracle Coalfields ( LON:ORCP 2.62p / £5.64m)
Oracle Coalfields, the coal explorer and developer of a lignite mineral property located in the south-eastern desert of the Sindh Province, Pakistan, today announced its unaudited interim results for the six months ending 30 June 2012. At the period end the cash and cash equivalents was £0.27m which is a decrease from £3.3m in 2011. The Group will be requiring additional funds to cover its working capital needs for the next six months and is therefore considering a number of options and strategies in respect to future funding. They said they expect to make further announcements on a financing plan in due course. The company is moving from exploration towards development. This transformation is reflected by the completion of the Technical Feasibility Study by leading international consultants SRK Consulting; the issuance of the Mining Lease for Block VI Thar Coalfield; signing a Joint Development Agreement with Karachi Electric Supply Company; and the recent finalisation of the Implementation Plan by Dargo Associates Limited. The Company is now entering the implementation stage with mine development targeted for the first half of 2013.

Oxford Pharmascience (LON:OXP 1.5p / £8.66m)*
Oxford Pharmascience, the specialty pharmaceutical company that uses advanced pharmaceutic technologies to reposition medicines, this last week announced it has completed successful first stage commercial scale up work for its OXPzero(TM) taste masked ibuprofen. Over the last few months the Company has been working with a contract manufacturing partner to produce the taste masked ibuprofen in a batch that is both scalable and suitable for product registration. The Company will now progress to undertake a clinical trial with co-development partner Hermes Pharma to demonstrate the bio-equivalence of this taste masked ibuprofen, results of which are expected in the first quarter of 2013.

Petrel Resources (LON:PET 7p / £5.37m)
Petrel Resources, the Irish hydrocarbon exploration company with activities in Iraq, Ghana and Offshore Ireland, announced its interim results for the six months ending 30 June 2012. The loss came in at EUR 257k (vs. EUR 200k H1 2011). That being said much progress has been made.  A new management team was appointed in Iraq. They have clarified Petrel’s relationship with the authorities and are pursuing existing and new opportunities. The Ghanaian authorities have been provided with evidence of Petrel’s financial and technical ability to conduct the required work programme on Tano 2A Block and further exploration has confirmed the value of the Tano Basin acreage. Petrel is progressing its Irish Offshore Option Blocks in the northern and eastern sections of Porcupine Basin and several new targets have been identified. Chairman, John Teeling said: “Petrel is well financed for all current needs with over US$4m cash. The board is committed to our activities in Iraq and Ghana offers significant upside to the company.”

Plethora Solutions Holdings (LON:PLE 5.12p £10.71m)*
During the first half of 2012 Plethora filed PSD502 with the European Medicines Agency as expected and on schedule. Plethora stated in the interims that it expects approval of PSD502 late Q3/early Q4 2013, and talks have commenced with multiple parties to identify a commercial partner to bring PSD502 product to market. The trading business, The Urology Co, has delivered strong growth in revenue in line with the board’s expectations – H1 revenues were £283,000 a 13-fold increase over the same period last year and a 56 per cent increase over the whole of 2011.  In addition the gross margins improved to 46 per cent in H1 2012. There was a positive start to the second half of the year with strong trading in July and August. There has been a continuing focus on cost control: compared to the same period in 2011 sales, marketing and distribution costs reduced by 32 per cent to £426,000 and G&A costs reduced by 39 per cent to £529,000. In 2011 the Group clearly set out its strategy that it would: (i) pursue the commercialisation of PSD502 in the shortest timeframe and (ii) seek to grow The Urology Co.  In the first half of 2012, both of these objectives have been met.

Plexus Holdings  (LON:POS 139p / £115.02m)
Plexus Holdings, the oil and gas engineering services business and owner of the proprietary POS-GRIP(R) friction-grip method of wellhead engineering, announced a four year contract to supply wellhead and mudline equipment to Brunei Shell Petroleum Sdn Bhd. Under the terms of the contract, which are subject to finalisation, Plexus will supply both High Pressure/High Temperature (HP/HT) and standard pressured Wellhead and Mudline systems and services, using the Company’s proprietary POS-GRIP technology, for a multi-well exploration programme in Brunei. The value of the initial contract is estimated to be worth approximately £2m over the next 18 months dependant on the number of wells drilled. Revenues commence in October 2012.

Renew Holdings (LON:RNWH 88.5p / £53.01m)
Renew, the engineering services group focused on the UK infrastructure sector, has provided an update on trading for the financial year ending September 2012. The Company expects that its operating profit before exceptional items and amortisation will be in line with market expectations for the year. To deliver further business efficiencies, it incurred exceptional redundancy and restructuring costs in the second half of the year of £1.3m, and also decided to close the business of C&A Pumps Ltd with immediate effect. C&A Pumps found it increasingly difficult to trade profitably following changes to Water industry framework arrangements. The Company has appointed Paul Scott, Managing Director of Shepley Engineers Ltd, to the role of Engineering Services Director of Renew.

Seeing Machines (LON: SEE 1.75P / £7.24m)
The preliminary results for year ended 30 June 2012 showed total revenue increased 9.2 per cent to A$7.82m however gross profit was A$4.31m which decreased from A$4,875,031 in 2011. The decrease was primarily due to a change in product mix resulting from higher DSS sales, the sale of services (including consulting) and lower faceLAB® and faceAPI™ sales. The net loss fell to A$1.74m compared to A$2.17m in 2011. Cash at 30 June 2012 decreased to A$5.78m compared to A$1.65m in 2011, this was mainly due to continuing investment in the expansion of business development and increased scaling of field support capabilities within the Company’s main Driver Safety Solution (DSS) markets. Due to new customers planning programmed increases in their deployment, the sales pipeline expanded significantly to over A$24m in value during the period. Other highlights were securing a major road transport customer, increasing company trucks now running DSS to over 65; there was additional DSS business secured in the Americas, Australia and South Africa and the appointment of technology entrepreneur Ken Kroeger as CEO and of experienced chairman Terry Winters.

Serica Energy (LON:SQZ 29.5p/ £52.15m)
Serica Energy, the oil and gas exploration, development and production Company with activities in Europe, Africa and Indonesia, has announced that it has successfully completed the acquisition of 4,180 square kilometres of 3D seismic data in its Luderitz Basin Blocks, offshore Namibia. The survey, conducted by Serica on behalf of its partners, BP, NAMCOR and IEPL, commenced in May and was undertaken by Polarcus Seismic Ltd. using the 10-streamer seismic vessel Polarcus Nadia. The data is believed to be of exceptional quality and has been acquired in the south east of the licence area over a clearly defined prospect which is located in a good setting for potential reservoir development. It is now being processed fully to delineate the prospect and to identify additional prospects associated with locally present channel sands. Initial results are expected to be available around the end of the year and will be amalgamated with regional geological information prior to determining a forward drilling programme.

ServicePower Technologies (LON:SVR 6.12p/ 11.61m)
AIM listed market leader in field management announced that it has secured new premises for its head office in the United States, in Reston, Virginia. Reston is an established hub for growth technology businesses and the high quality offices will serve as a good base from which to service the Company’s growing US client base. A sublease has been entered into between ServicePower and Asteria Corporation, a charitable foundation in the US, for a period of four years. Further to the sublease, a warrant agreement has also been entered into with Asteria under which, in lieu of rental payments, the Company has granted Asteria a warrant to subscribe for 4,264,896 ordinary shares of 1 penny each. The Warrant Shares can be exercised over five years in eight equal parts with only four parts to be exercised each year at the closing price for the business day immediately prior to the service of a warrant exercise notice, less 50 per cent. The agreement preserves the cash in the ServicePower business while demonstrating Asteria’s confidence in ServicePower’s growth prospects.

Shepherd Neame (LON:SHEP.PL 792.5p/£90.85m)
Kent-based brewer and pub operator announced final results for the 53 weeks to 30 June 2012. Turnover increased by 9.6 per cent to £133m (2011: £121.3m), and profit before tax impressively by 39.7 per cent to £9.1m (2011: £6.5m). A final dividend of 19.6p (2011: 19p) takes overall dividend per share for the period to 24.5p (2011: 23.8p).  Despite the difficult economic and general trading environment, volume sales for the Company were up by 5.6 per cent against the UK market decline of 1.2 per cent- own beer sales were up 5.2 per cent whilst Spitfire and Ashahi also performed very well. The Company’s pub and hotel estate saw a number of acquisitions – seven in total – and since year end a further 23 letting rooms have been acquired taking the overall to 499. This is on the back of a very good performance from the estate which saw like-for-like managed sales on a 52 week basis up 7.6 per cent, with liquor up 6.2 per cent, food up 10.9 per cent and accommodation up 7.0 per cent.

Sunkar Resources (LON:SKR 3.17P / £5.29m)
Sunkar Resources, a phosphate rock miner, recorded on Friday a widening pretax loss however the fundamentals of its development project remain as positive as ever according to the Board. During the six months ended 30 June 2012, the Company continued to pursue its strategy of generating revenue from the sale of Direct Application Rock (DAR) and reducing overheads. Revenue for the six months ending June 30, generated from sales of DAR $0.54m compared to $0.02m in 2011. The pretax loss however increased to $4.53m from $4.51m in 2011. The occurrence in the region of all the key ingredients for high analysis phosphate fertiliser production, namely: phosphate rock, sulphur and natural gas for ammonia production, can, the Board believes, make this one of the lowest cost production sites in the world. Furthermore, the plant location in the middle of the Eurasian cereal growing areas of southern Russia, northern Kazakhstan and China, which are removed from much of the Russian and Chinese domestic phosphate industries, makes, the Board believes, potential future Chilisai fertilizer deliveries by Sunkar the lowest cost to this under-supplied region.

Symphony Environmental Technologies (LON:SYM 3.62p / £4.64m)
Symphony Environmental Technologies, the specialist in advanced plastics technologies including controlled life, anti-microbial and anti-counterfeiting products, and recycling technologies announced its interim financial statements for the six month period ended 30 June 2012. Revenues came in at £2.12m (2011 H1: £3.89m) generating an operating loss of £0.68m (2011 H1: profit £0.28m).With a high level of debtors at the end of last year, the Group changed its operating policies with many of its overseas territories in order to reduce exposure. The effect has been a substantial reduction in debtors since the end of the year, albeit receivables were still high at the end of June as the effect of this policy change will complete during the second half of this year. This also had the effect of reduced invoicing and reported revenues during the first half of the year. However, business opportunities continued to strengthen in some of its major markets, and several product development projects accelerated towards maturity. Symphony continues to generate cash from operations and is now a worldwide business and is not significantly exposed to the economic downturn in the UK and Europe.

TEG Group (LON:TEG 5.12p/ £9.66m)
This has been a period of transition for the Group, with a refocusing of the business on its operating sites, further cost reductions and, since the period end, a successful financial close on the Dagenham project. Underlying trading at the Group’s own plant operations has been strong. Half-year revenue for period was £5,617,000 (2011 interim: £9,333,000) and the Group loss was £1,795,000 (2011: £798,000), reflecting the loss of the North East Wales contract and delays to the fourth facility in Manchester and at Dagenham. The Group recorded a gross profit of £1,268,000 (2011 interim: £2,345,000 profit) and a Group cash balance as at 30 June 2012 of £1,101,000.

Ultimate Finance (LON:UFG 14.87p/£8.61m)
The leading provider of financial solutions to SMEs, Ultimate Finance, announced final results for the year ended 30 June 2012 in which revenue increased by 16 per cent to £11,248,000 (2011: £9,706,000), whilst adjusted PBT increased 58 per cent to £1,909,000 (2011: £1,212,000). The Company has seen significant growth across the business and, with high street banks restricting financing for small business, expects to continue to fill this cash flow need and expand or replace the banks role with small businesses. A 14 per cent increase in the dividend to 0.4p per share perhaps reflects said growth.

ViaLogy (LON:VIY 2.38p / £22.01m)
ViaLogy announced that the company is in exploratory discussions with some of the largest Chinese national oil companies and upstream services providers to deploy their QuantumRD(R) software platform for both their national and global assets. ViaLogy is discussing service delivery arrangements whereby the platform can be utilised to determine the locations of new hydrocarbon assets on active fields. QuantumRD(R) can potentially provide more accurate structural and stratigraphic interpretations of seismic data than is now achievable with industry-standard tools. These business discussions follow issuance of a patent in China for QRI(R) related technology, which provides the fundamental weak signal processing and computational engine (employing quantum resonance interferometry) for ViaLogy’s QuantumRD software platform. The company currently has a number of QuantumRD related patents pending in China.

William Sinclair (LON:SNCL 162.5p/£27.66m)
William Sinclair provided a trading update in which it announced that challenging UK harvest conditions (with the UK having the wettest summer in 100 years) have severely challenged the Company’s ability to harvest peat from any of its bogs, and also affected peat supplying regions beyond the UK, including Ireland, Scandinavia and the Baltic countries which the Company believes will lead to price rises of approximately 10-15 per cent. Other news  includes the Company having appealed to the Secretary of State for the Environment to turn over the decision to not allow the Company to harvest peat at its Chat Moss site, and also that Chief Executive Bernard Burns will resign from the Board in early 2013 once his replacement has been appointed. The final dividend for 2012 is likely to be lower than last year’s 4.4 pence per share due to the impact of the climate conditions.

*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.