Small Cap Wrap: Month: January 2014

AIM Breakfast - Archive

14th January 2014

This week: Ilika fully charged, GW goes west as does Lombard, Botswana Diamonds advancing Alrosa JV

Not much has changed in the past week, the major indices continue to move sideways while the small caps continue to inch ahead. The FTSE is essentially unchanged since the start of the year, but the All-share AIM Index has added another 26 points to reach 878. Many investors remain obsessed with the artificial monetary policy. Any optimism following disappointing US payroll data released last Friday was squashed by comments from the Atlanta Fed President Lockhart who spoke in favour of further tapering. Even the raft of M&A deals announced recently has failed to entice investors. At least, the banks are outperforming after the Basel Committee for Banking Supervision paved the way for the easier implementation of the Leverage Ratio. The rest of the week sees the release of the Fed Beige Book, housing stats and the Michigan confidence index and it appears that markets want to hear bad news so tapering is delayed.

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.

AEG contract wins,APH pre-close trading update and acquisition,AGL Cambridge Parsortix laboratory,BOD PL117 exploration work underway,CRA defence contracts,DEMG trading update,GWP $87.9m raised on NASDAQ,IKA world first for Ilika solid state battery,IGP share buyback,INSP agreement with Enertek,LMT US IPO,NPT trading update,OFF trading update,ORM Barruecopardo permitting update,OXB Lancet publication,PHD acquisition,SHG Q4 2013 production update,SIM trading update,STI strategic update,STT new framework agreement,TRCS significant order,TRAK significant order,THAL trading update,TYR Vamousse™ in Walmart stores,VGM Q1 update,VENN acquisition,ZOX production update

Active Energy Group (LON:AEG 2.5p / £15.47m)

Active Energy Group, the pan-European supplier of high-quality wood chip and associated timber products for green energy Biomass power generation and MDF manufacturing, announced that it has secured significant new contracts to supply two leading Turkish MDF manufacturers with its high-grade MDF-quality wood chip. Under these contracts, Active Energy Group has agreed to supply approximately 228,000 metric tonnes of high grade MDF quality wood chip over the next 12 months, generating additional revenues for the Company of approximately US$24m in FY2014. This is in addition to the previously announced (RNS dated 14 August 2013) contract with Biomasse Italia SpA to supply a minimum of 240,000 metric tonnes of wood chip for Biomass fuel, 160,000 metric tonnes of which is expected to be delivered in 2014. As a result of these substantial new contract wins, Active Energy Group has made significant inroads towards meeting the forecasted volumes of Black Sea shipments for 2015 as indicated in the Company’s Shareholder Circular dated 4 June 2013, when the Company sought shareholder approval to acquire its now principal trading partner, Nikofeso Holdings Limited. Discussions with other major Turkish producers are at an advanced stage and the Company is confident of making additional announcements of further contract wins in the near future. Richard Spinks, Active Energy Group CEO, commented: “Demand for wood chip continues to exceed supply and the securing of these two new supply contracts is an important step in fulfilling the potential of this vibrant and expanding business. Fixed price shipping capacity and negotiations on a further two charter vessels will only continue to strengthen the logistics activities of AEG. The Company will continue to focus on its aim of becoming the major European supplier of wood chip for Biomass fuel and MDF manufacturing, and I believe that the management team has the operational and logistical expertise to make that happen in a timely manner.”

Alliance Pharma (LON:APH 37.875p / £88.03m)

Alliance Pharma, the speciality pharmaceutical company, announced its pre-close trading update ahead of its preliminary results for the year ended 31 December 2013. Turnover for 2013 is expected to be £45.5m (2012: £44.9m) and pre-tax profits are expected to be in line with current market expectations. Sales of the Hydromol™ dermatology range grew from £4.7m in 2012 to £5.3m in 2013. The Opus Group stoma care business made a substantial contribution to sales of £3.9m. Sales of Alliance’s cyclical toxicology product peaked in the first half of 2013. The product now has competition from a number of new market entrants such that the Company expect markedly reduced sales in the next procurement cycle due in 2015. International sales of Syntometrine™, the obstetric drug acquired in June 2013, were in line with expectations at £1.2m. Initial sales of the lip balm Lypsyl™, acquired in December 2013, were also recorded during the period. Production volumes for Ashton & Parsons Infants’ Powders™ have been constrained since the acquisition in 2011 owing to inefficient packaging machinery; sales in 2013 were £0.4m. New machinery has just been commissioned, allowing production volumes to be substantially increased. Separately Alliance also announced the acquisition of the thyroid product Irenat™ in Germany from subsidiaries of Bayer AG. In the 12 months to October 2013, total sales of Irenat by Bayer were €0.8m and the gross margin generated was €0.5m. Irenat, a sodium perchlorate monohydrate, is marketed in Germany and is mainly used for diagnosing and treating hyperthyroidism. The net bank debt at 31 December 2013 was £25.5m (2012: £21.8m), after £10m was invested in acquisitions during the year. Alliance currently has over £20m of committed, unutilised acquisition facility available to fund acquisition opportunities. Alliance’s preliminary results for 2013 are expected to be announced on 26 March 2014.

ANGLE (LON:AGL 86.5p/£35m)

ANGLE, the specialist medtech company, has announced an agreement with the Medical Research Council’s Cancer Unit at the University of Cambridge to establish a laboratory facility that will allow research teams in the Unit, and the wider scientific community at the University of Cambridge, to have improved access to the Parsortix system. The facility will allow researchers in Cambridge to investigate applications of the Parsortix system in the diagnosis and treatment of several forms of cancer. ANGLE is supporting this activity through the provision of Parsortix machines and a contribution to the costs of employing a full-time technician. ANGLE’s primary objective in establishing this agreement is to support its aim of achieving widespread market adoption of the Parsortix system in clinical practice. The Cambridge facility will aid ANGLE in identifying key clinical applications, in securing positive clinical data demonstrating the medical utility of those applications in patient trials, and in obtaining Key Opinion Leader support for the adoption of Parsortix in the routine medical care of cancer patients.

Botswana Diamonds (LON:BOD 3.25p/£5.45m)

Botswana Diamonds, the diamond exploration Company, announced that work on licence PL117 in the Orapa area has commenced. The Company’s geologists have completed the advance work and procured the necessary equipment. The geologists of its joint venture partner, Alrosa, will join them, in the Orapa region, in the coming weeks. The licence is small, 2.9 sq km, and is close to the Karowe Diamond mine. Botswana Diamonds and Alrosa identified licence PL 117 as a key target. The Botswana Diamonds team previously discovered a diamondiferous kimberlite (AK10) on the same licence in 2004. Following a fund raise in December 2013, the initial Alrosa/Botswana Diamonds joint exploration project will focus on a work programme at the PL117 licence area. The joint venture team will carry out further soil sampling, geophysical and geochemical work to define exact drill targets, with drilling expected to commence before the end of quarter one this year.

Corac Group (LON:CRA 10.75p / £45.42m)

Corac Group announced that its subsidiary Atmosphere Control International (ACI) has made a very positive start to the year, already securing three significant orders. ACI has received contracts for atmosphere management systems to be used by two South East Asian navies. One contract is for the supply of the first CO(2) removal unit for a new customer programme and the second is for an additional CO(2) scrubber unit for an existing customer. These are in addition to an order from BAE Systems for a further boat set in the Astute programme. All of these systems will be delivered during 2014 with a total value in excess of £3m. Corac Group Chief Executive Phil Cartmell commented: “This is an encouraging start to 2014 for ACI and rewards the hard work put in last year to support existing programmes at home and abroad and to grow the business with new export customers. These orders equate to more than 30 per cent of ACI’s pro forma full year historic revenues and represent more than 20 per cent of the combined Group historic order book, and thus provide a very good platform for further growth this year.”

Deltex Medical Group (LON:DEMG 13.75p / £23.50m)

Deltex, the global leader in oesophageal Doppler monitoring (ODM), has announced an update on its trading performance for the year ended 31 December 2013. It can report over £1m growth in surgical probe sales to £5.5m (2012: £4.5m); with UK surgical probe growth of 26 per cent, a strong growth in H2 2013 up 37 per cent on H2 2012; US surgical probe growth of 13 per cent; and an international surgical probe growth of 26 per cent. The cash position was £1.5m at 31 December 2013. Group sales for statutory reporting purposes are expected to be circa £7.2m (2012: £6.8m). The Company plans to announce its results for the year ended 31 December 2013 in the week of 10 March 2014. Nigel Keen, Chairman of Deltex Medical, commented: “Deltex Medical made substantial progress in 2013 and enters 2014 with momentum in key markets. This momentum is underpinned both by the investment we have already made in establishing ODM as an important new medical modality and by the strong market positions we have built as platforms for growth.”

GW Pharmaceuticals (LON:GWP 251p / £446.75m)

GW Pharmaceuticals, a bio pharmaceutical company focused on discovering, developing and commercialising novel therapeutics from its proprietary cannabinoid product platform, announced the pricing of its follow-on offering of American Depositary Shares, or ADSs, on the NASDAQ Global Market. GW will issue ADSs on NASDAQ at a price of $36.00 per ADS raising gross proceeds of $87.9m (£53.4m). The follow-on offering price represents a premium of 10.1 per cent to the closing middle market price for an ADS of $32.70 on 19 December 2013, the day immediately prior to announcement of the proposed follow-on offering, and a discount of 5.4 per cent to the closing middle market price for an ADS of $38.06 on 8 January 2014. “We are announcing today that GW has successfully completed an oversubscribed offering raising $87.9 million. This offering enables GW to carry out the clinical development of our childhood epilepsy orphan development programme centred on our product candidate Epidiolex(R). We believe that Epidiolex has the potential to meet significant unmet needs in the treatment of orphan childhood epilepsy syndromes such as Dravet syndrome and Lennox-Gastaut syndrome. With the new funds raised, and GW retaining global commercial rights for the epilepsy programmes, we believe that GW has enhanced its potential to deliver value to investors and patients,” stated Justin Gover, Chief Executive Officer of GW.

Ilika (LON:IKA 36p/£17.47m)

Ilika, the advanced materials discovery Company, announced it has achieved a unique and simple methodology for producing a stacked solid-state cell battery that is likely to lead to significant out-licensing opportunities for the Company. The mass-market commercialisation of solid-state batteries will be a step change in the evolution of battery technology; enabling lighter, safer batteries charging up to 6x faster and lasting 4x longer between recharges than the highest performance lithium ion incumbents. Over the last 18 months, building on its material discovery platform and expertise in thin film material synthesis, Ilika has been developing a proprietary solid-state battery chemistry and fabrication process, facilitating the scale-up manufacture of the next generation of solid state lithium ion batteries. Electrochemical testing of the stacked cells has started and is expected to be completed in Q1 2014. Successful test results will confirm Ilika’s proprietary solid-state battery processing, significantly enhance the valueof the Company’s Intellectual Property portfolio and will be the key milestone on the full commercialisation journey of solid-state batteries.

Inspirit Energy (LON:INSP 2.35p/£13.31m)
INSP agreement with Enertek

Inspirit, which is developing a heating boiler which also simultaneously generates enough electricity to power the average home, announced that internationally renowned Enertek International Ltd (Enertek) has been contracted to assist with the final mass manufacturing specifications and designs for the boiler’s key heating components. Enertek will also assist in obtaining the necessary certifications required to sell the appliance initially in the UK and European market places. Inspirit has developed a high efficiency boiler suitable for large domestic and small commercial and enterprise use capable of simultaneous generation of up to 15kW thermal and up to 3kW electrical output. This represents about 3 times the electrical output compared to similar appliances available in the global marketplace. Enertek is an independent engineering consultancy which specialises in the design, development and certification of gas, oil, electrical and renewable appliances for a large number of global manufacturers. In October 2013, Inspirit announced that it had concluded an agreement with international technology and product developer, Sentec Ltd to provide the appliances electrical controls package and the energy management systems for the Inspirit mCHP boiler. Sentec applies its energy industry expertise and experience in three main fields; Smart Grid & Metering – where Sentec has its technology embedded in over 12 million field-deployed units; Smart Buildings – where Sentec enables the homeowner and the buildings/site manager to have clear understanding and control over their energy management; and Consumer products – where Sentec is helping revolutionise how every-day consumer products use and report the use of energy.

Intercede Group (LON:IGP 146p/£71.15m)

Intercede announced its intention to commence a share buyback programme to acquire up to 250,000 ordinary shares as and when they become available at volumes and prices that, from time to time, the Board considers appropriate. The Board intends that any shares acquired will be held in treasury and used for the purposes of a Share Incentive Plan (SIP) that is in the process of being established for all UK employees. Any acquisitions will be effected in accordance with the Company’s general authority to buy back shares and within certain set parameters, including that the maximum price paid per share is to be no more than 105 per cent of the average middle market price of an Intercede share for the five business days preceding the date of acquisition. In addition, given the liquidity in the Company’s shares, the Company may buy back in any one day more than 25 per cent of the average daily volume over the preceding 20 business days.

Lombard Medical Technologies (LON:LMT 196p / £87.70m)

Lombard Medical Technologies, the specialist medical device company focused on Endovascular Aortic Repair of abdominal aortic aneurysms, announced that it intends to submit a registration statement to the US Securities and Exchange Commission relating to a proposed initial public offering of ordinary shares and a listing on NASDAQ. In connection with the NASDAQ IPO, Lombard Medical will also delist its ordinary shares from AIM, a market of the London Stock Exchange. Lombard Medical intends to use proceeds from the NASDAQ IPO to accelerate its commercialisation strategy for Aorfix(TM) in the US with a particular focus on continuing to build its direct sales force and marketing infrastructure as well as continuing to invest in developing new products to treat complex vascular disease, including a stent graft to treat aneurysms in the thoracic aorta. The Company received United States Food and Drug Administration approval for Aorfix in February 2013 with a unique label indication for the treatment of patients with angulations at the neck of the aneurysm up to and including 90 degrees, and formally launched Aorfix in the US in November 2013.

NetplayTV (LON:NPT 21.75p/£63.84m)

NetPlayTV, the interactive gaming Company, provided an update on Q4 performance. During the period the Company acquired the Vernons brand from Sportech plc for total cash consideration of £3m. The integration of this brand into the existing NetPlay infrastructure is almost complete and brings with it additional products in sportsbook and bingo which will be marketed through established channels from the start of 2014. Mobile and tablet saw net revenue increasing by 121 per cent year on year and accounting for 30 per cent of total net revenue. As part of the stated strategy, marketing continues to be a key driver for growth in the business. The Company announced that following the prior season’s success, its brand SuperCasino is once again the headline sponsor for Celebrity Big Brother currently being aired on Channel 5, and in addition Vernons Bingo is the headline sponsor for Loose Women on STV throughout the whole of 2014. The Directors are confident that the Company will meet full year market expectations with full year EBITDA at the top end of expectations. The Company plans to issue its full year preliminary results on Tuesday 8 April 2014.

Office2office (LON:OFF 25.25p / £9.17m)

Office2office, a provider of office supplies and business solutions, gave an update on trading for the year ended 31 December 2013. The Group expects to report underlying profit before tax in the region of £4.2m, with reported profit before tax significantly ahead of the prior year, as restated, and borrowings of approximately £23m at 31 December 2013 (2012: £29.0m), reflecting the continued focus on reducing the Group’s debt. For 2014, the Board is now of the view that the underlying profit is likely to fall short of 2013. The board has concluded that continuing structural changes in the office supplies market, including the changes in customer behavior it saw in 2013, suggest that trading conditions in this market will remain at least equally challenging this year, with continuing pressure on margins. In response, we already have actions underway to reduce costs and improve efficiency and are also working on some complex changes to the way we do business. The benefits of these actions will be realised incrementally during 2014 and 2015 but mainly from the second half of 2014. A further update on current trading will be provided at the time of the 2013 final results, which are expected to be issued on 2 April 2014.

Ormonde Mining (LON:ORM 6p/£25.25m)

Ormonde Mining, the mineral development and exploration Company focused on Spain, provided an update on progress in connection with permitting of its flagship Barruecopardo Tungsten Project in Salamanca, Spain. Saloro SLU, the Company’s wholly-owned subsidiary which is developing Barruecopardo, has now received formal written notification from the Regional Environmental Department in Castilla y Leon of a positive outcome in the “Report on the Nature Network” (IRNA) which is necessary to allow for the granting of the Environmental Impact Declaration (EID) for the Project. This EID is the most important document in the environmental permitting of the Project without which the Mining (Exploitation) Concession cannot be granted by the Director General for Energy and Mines. The IRNA approval notification states that the Barruecopardo project, as proposed and presented by Saloro in its submissions, will not adversely affect the integrity of the areas of wildlife and flora/fauna habitat in proximity to the proposed mining operation in so far as Saloro complies, inter alia, with the conditions presented in its Environmental Impact Study and Restoration Plan.

Oxford BioMedica (LON:OXB 3.225 p / £45.67m)

Oxford BioMedica, the gene-based bio pharmaceutical company, announced the online publication of results from the previously reported ProSavin® Phase I/II study in patients with advanced Parkinson’s disease (PD) in The Lancet. According to the key published findings in The Lancet, ProSavin® has demonstrated a favourable safety profile and a statistically significant improvement in motor function relative to baseline at six and 12 months post-treatment. John Dawson, Chief Executive Officer of Oxford BioMedica, said: “The ProSavin® Phase I/II study was the first ever trial, worldwide, to directly administer a lentiviral vector-based product to patients, and the long-lasting benefits we have seen to date demonstrate the strong potential of this product and the underlying technology developed by Oxford BioMedica. We are pleased that our research has been recognised by The Lancet; this publication in such a highly regarded peer-reviewed journal highlights the significance of our findings to the Parkinson’s disease community.”Oxford BioMedica is currently evaluating a more potent formulation of ProSavin®, called OXB-102, to ensure the greatest chance of success in future randomised studies. OXB-102 will also increase the commercial opportunity by offering extended patent protection and a relative reduction in cost of goods. The Company holds regular updates with interested parties and is evaluating the most effective strategy to advance OXB-102 into its next stage of development.

PROACTIS Holdings (LON:PHD 37p/£12m)

PROACTIS Holdings, the specialist Spend Control software provider, has entered into an agreement to acquire the entire issued and to be issued share capital of EGS Group Ltd (EGS) for £2.9m, payable in cash on completion. The net cash consideration is expected to be approximately £2.2m as EGS is expected to have approximately £0.7m of cash at completion. The enlarged Group will be the largest independent eProcurement solution provider to the UK Public Sector. EGS brings over 70 new clients to the Group, managing more than £2.5bn of spend through 40,000 suppliers and more than 90 per cent of clients follow a subscription business model with 3 or 4 year terms.

Shanta Gold (LON:SHG 11.87p/£54.86m)

Shanta Gold, the East Africa focused gold production and exploration Company, announced its preliminary production results for the quarter ended 31 December 2013 as well as its 2013 full year production at its New Luika Gold Mine. Gold production for the quarter was 19,581 ounces, an increase of 3.64 per cent on the previous quarter, giving total full year production of 64,054 ounces, which is marginally above the production guidance of 63,000 ounces. Throughput in the processing plant increased and has stabilised at the target 1,275 tonnes per day; consequently consistent gold production of just over 6,500 ounces per month was achieved in Q4.

SimiGon Limited (LON:SIM 30.25p / £ 14.31m)

SimiGon, a provider of simulation training solutions, provided an update on trading and business performance for the 12 months ended 31 December 2013. The Company reported that the strong trading of the first half of the year has been maintained during the second half and it has continued to deliver upon its long term contracts on time and on budget, often exceeding customer expectations in both the execution of delivery and performance of its systems. The Company is particularly pleased, to have secured a $6.7m contract in June 2013, to provide, as a prime contractor, a SIMbox training solution. The Company expects to report revenue for the year ended 31 December 2013 of at least $7.9m (2012: $6.8m), slightly ahead of market expectations and representing growth of 16 per cent over the previous year, and profits in line with market expectations, representing an increase of approximately 20 per cent over the previous year. The Company’s balance sheet remains strong, including over $8.0m in cash and cash deposits at 31 December 2013. President & CEO, Ami Vizer, said: “SimiGon continues to grow and maintain its strong financial performance as it cements its position as a supplier of choice in the provision of simulation training solutions. Through our long term contracts, we have good visibility of revenues and a robust pipeline of new opportunities which gives us great confidence for 2014 and beyond.”

Stratex International (LON:STI 4.375p/£20m)

Stratex International, the exploration and development company focused on gold and base metals, has provided an update on its activities in Turkey, East Africa and West Africa. It is continuing to use its strong cash position to invest in and fast-track quality projects. First results from 33,000 metre RAB drilling programme at the Dalafin project have been encouraging and follow-up drilling has confirmed significant mineralisation. The Muratdere project is nearing completion of a feasibility study while production is anticipated to commence at Altintepe this year. Drilling has commenced at the Tembo Gold project as a follow-up to the high-grade intersection of 15m @ 22.81 g/t Au from a 299 metres down hole. The company has started 2014 with a strong cash balance of approximately £10m and is increasingly confident of future operating cash flow from its 45 per cent owned Altintepe gold mine in Turkey given the relatively short, six month construction period once it has received the final outstanding permits.

Straight (LON:STT 43.5p/£5m)

Straight, the environmental products and services group and the UK’s leading supplier of specialist waste and recycling container solutions, has reported that it has been reappointed by the Eastern Shires Purchasing Organisation (ESPO) and the Central Buying Consortium (CBC) to supply a wide range of products under a two year Framework Agreement, with the option to extend for a further two years. The estimated value of the four year Framework Agreement, which commences on 1 February 2014, is expected to be up to £100m through which Straight expects to generate at least £4m of annual revenues in line with previous levels achieved from this channel. Of 18 possible lots, Straight bid for a total of 14 and secured a position on all of these, meaning Straight has the largest product range on the framework. The products to be supplied include all of the Group’s core product range including plastic wheeled bins, steel wheeled bins, food waste caddies and kerbside collection boxes as well as its two new products, the 3BoxStack and the Food Waste Inner Caddy. Straight holds joint supplier status on each lot with the exception of providing a Totally Managed Solution for Compost Bins where it is the sole supplier. ESPO and CBC are local government purchasing and distribution consortia with a broad geographical coverage.

Thalassa Holdings (LON:THAL 299.5p / £71.82m)

The Board anticipates that the Company will significantly exceed market expectations of operating profits, net profits and earnings per share for the year ended 31 December 2013. Although full year accounts have not yet been audited, the Boards expects the Company’s turnover will be broadly in line with market expectations, but that operating profit will beat such expectations by more than 10 per cent and earnings per share will beat such expectations by more than 20 per cent. Duncan Soukup, Chairman, said: “We are delighted that the Company is expected to significantly exceed market expectations for 2013, which underlines our rigorous approach to cost and CAPEX management. We also have increasing confidence in the Company’s ability to maintain its progress in 2014.”

Tracsis (LON:TRCS 212.5p / £ 54.27m)

Tracsis announced that it has received a significant order for its Remote Condition Monitoring equipment. The initial order, which has been placed through the five year Framework Agreement announced on the 21 October 2013, comes from an existing UK client and has a value of £2.2m. It will be fulfilled within the current financial year as per an agreed delivery schedule with the customer. An order of this magnitude provides the Group with additional confidence in meeting current market expectations. John McArthur, Chief Executive Officer commented: “We are delighted to have won this further major order, which is testament to the quality of the technology solutions we provide and our excellent working relations within the rail industry. Given the magnitude of this order, we believe Tracsis is well placed to win further contracts of this nature both within the UK and overseas.”

Trakm8 Holdings (LON:TRAK 41.5p / £11.83m)

Trakm8, designer, developer and manufacturer of licensed GPRS based hardware and software for the vehicle placement and security market, announced the award of a significant hardware order with a UK insurance company of a £1.2m hardware order for telematic units with the bulk of the revenues expected in the next financial year commencing 1 April 2014. This hardware order is expected to be followed by a service support contract providing additional and long-term recurring revenues for the Group. John Watkins, Executive Chairman of Trakm8 commented: “This significant order is validation of our investment in a larger engineering and sales resource and is the largest order ever received by the Group. We will be manufacturing the devices in our newly acquired Box Telematics facility, reflecting the benefits of the resources that this business adds to the Group as a whole.”

TyraTech (LON:TYR 5.125p / £6.01m)

TyraTech, Inc., a life sciences company focusing on nature-derived insect and parasite control products, announced its head lice treatment product, Vamousse™, will come to Walmart stores in the USA from the end of March 2014. The USA market for head lice control products is estimated by TyraTech as being worth approximately $150m per annum. Given the superior efficacy and safety of Vamousse™, TyraTech believes it is in a position to achieve strong penetration of this market for its breakthrough head lice product, reinforcing their confidence in meeting market expectations for 2014 revenues.

Vatukoula Gold Mines (LON:VGM 6.35p/£20m)

Vatukoula Gold Mines, the gold producer, has announced its unaudited preliminary operational results from its 100 per cent owned Vatukoula Gold Mine in Fiji for the first quarter ended November 2013. Quarterly production of 11,090 ounces gold, with 11,415 ounces shipped, represented a 2 per cent increase in gold shipped compared to the previous quarter. There was an 8 per cent increase in underground ore mined to 104,805 tonnes, compared to the previous quarter. Cash cost per ounce shipped during Q1 2014 fell to US$1,363/oz compared with $1,590/oz. in Q1 2013. However, average realised gold price fell at a faster pace to $1,285/oz. compared with $1,721/oz. in Q1 2013. This resulted in an EBITDA loss of £2.5m in the quarter.

Venn Life Sciences (LON:VENN 25.5p/£5m)

Venn Life Sciences, a growing Clinical Research Organisation (CRO) providing clinical trial management and resourcing solutions to pharmaceutical, biotechnology and medical device clients, has announced that the consideration of €0.6m payable for the acquisition of the trade and certain business assets and liabilities of CRM Clinical Trials GmbH, a German based CRO (previously announced on 31 October 2103) has been satisfied by the issue of 1,962,583 Venn shares at the current share price of 25.5p.

ZincOx Resources (LON:ZOX 13.5p/£18.30m)

ZincOx Resources, the developer of Asia’s largest zinc recycling project, reported on the latest progress at its wholly owned Korean Recycling Plant (KRP). The KRP is in the final months of ramp-up to full production which remains on target for Q2, 2014. Since the start of 2014, having dealt with numerous maintenance and repair issues during 2013, production has ramped up steadily towards the target. The average LME zinc price for 2013 was US$1,909 and recently has averaged at US$2,050, which could have a significant impact on the Company’s earnings profile. In November, corrosion to some of the welds at KRP caused the Company to close one line of heat exchangers. The line was isolated using the blind flange concept which ZincOx had demonstrated in September, and enabled production to recommence using one line. The welds affected within the corroded unit highlighted the complexity of making completely reliable welds while making major repairs in situ. To avoid this, the corroded unit was moved to a workshop where an entirely new inner tube was inserted and subsequently reinstalled in December. Following the fundraising in November, a special grade of stainless steel was ordered and is expected to arrive in Korea before the end of January. This metal will be used to create new inner shells that are expected to have an operational life of at least 18 months. The use of pure oxygen, to enrich the concentration in the combustion air injected into the furnace, has had a number of beneficial consequences. As a result, the oxygen plant is being enlarged to maximise these benefits; this work should be completed next month. Combustion air will be gradually further enriched through the course of January and February, which is expected to enhance the production ramp-up. During November and December 2013, the company saw the production and sale of 2,289 and 1,145 tonnes of zinc in concentrate respectively in that period bringing the full year’s production to 24,577 tonnes, resulting in revenues in Korea for the year in excess of US$26m. January and February are planned to be full operating months, while in March there will be a planned short stoppage for maintenance.

*A corporate client of Hybridan LLP

A full archive of previous weeks’ Small Cap Wraps can now be viewed on

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.

7th January 2014

Small Cap Wrap team is back….wishing all our readers a very Happy 2014!

This week: This week: Life tastes good for MDZ, Easy to SWAP, DDD in Las Vegas

The year ended positively for the major stock markets, with the FTSE gaining 300 points in the last two weeks of December to end 2013 at 6,746 while the All-share AIM Index added 23 points to end the year at 851. In the UK, the best performing sectors in 2013 were Autos & Parts, Fixed and Mobile Telcos, Forestry & Paper and Financial Services. The worst performers were Mining, Oil Equipment & Services, Tobacco, Electricity and Food Retailers. It has been a dull start to the new year for the main markets after disappointing US macro data and Chinese services PMI, which fell to the lowest level since August 2011 at 50.9. The small cap sector continues to outperform with the All-share AIM index rising a further 16 points so far this year to 867. The economic calendar for the remainder of the week is busy and includes the release of US jobless claims and the Bank of England 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.

AGL appointment to SAB,AAU EIA approved,COP appointment of Chairman,CPX company update,COMS multiple contract wins,CRA result of general meeting and open offer,CPP pre close announcement & board changes,CRAW trading update,DDD demos at CES 2014,DSN trading statement,EPO agreement with BoAML,ESG remittance JV,FUM licensing in Nordic Region,IFM trading update,IVO positive portfolio company news,JLP production and financing update,MDZ contract party confirmation and results,NETD trading update,SWAP agreement with SoEasyPay,MWE contract win,RLD placing and open offer,SHFT additional work awarded,SSP acquisition & placing,WTM business restructuring & director changes

ANGLE (LON:AGL 81.5p / £36.87m)

Angle, the specialist medtech Company, announced the appointment of Dr Harold Swerdlow as a Scientific Adviser to the Company with immediate effect. Dr Swerdlow is Head of Research and Development for the Wellcome Trust Sanger Institute in Cambridgeshire and is a world-leading expert in next-generation sequencing. Previously, he was the Chief Technology Officer of Dolomite Ltd., a leader in microfluidics and microfabrication.

Ariana Resources (LON:AAU 1.2p/£7.07m)

Ariana Resources, focused on exploration and development in Turkey, reported that further to the announcement released on 30 August 2013 regarding the submission of its final Environmental Impact Assessment (EIA) report for the Kiziltepe Sector of the Red Rabbit gold-silver project in Western Turkey, the Ministry of Environment and Urban Planning has now formally approved the EIA for the initial mine at Kiziltepe. Ariana has reached a milestone achievement in the development of the Kiziltepe mine towards gold and silver production – targeted at 21,000oz of gold equivalent per annum. Ariana’s joint venture partner, Proccea Construction Co. will manage and finance the development, with construction commencing following receipt of final permits and mining anticipated to commence approximately six months after start-up. Negotiations regarding debt financing for the remaining US$25m are at an advanced stage, which will provide a clear pathway towards production at Kiziltepe without additional dilution. The project remains robust at the current gold price, with production cash costs estimated at US$600 per ounce of gold. Resource expansion upside has already been demonstrated across the project area – recent results from on-going exploration programmes underpin the potential to double the current mineable resource-base of 448,000oz gold equivalent.

CAP-XX (LON:CPX 3.95p / £4.52m)

CAP-XX announced that it is ready to ship prototypes of its new surface mount supercapacitor to potential licencees. These surface mount devices are suited for applications for high volume devices, where re-flow solder board assembly is deployed, notably smart phones. The Company has employed an additional sales manager to cover Asia where it is experiencing growth in demand for its devices. He is a Korean national with experience in passive component sales including supercapacitors, in Asia, North America and Europe. Meanwhile, the Company is experiencing increasing interest from the US and India for its automotive supercapacitors and is in discussions on licensing. CAP-XX expects to report sales in A$ for the half year to December 31st 21 per cent ahead of the corresponding period of 2012/13. Cash is expected to be A$2.7m as at 31st December. Together with the cost reduction programme which continues to deliver savings and improved gross margin and a weakening A$, the Company is in line to meet market expectations for the half year and views the remainder of its financial year with confidence.

Circle Oil (LON:COP 22.6p/£127.41p)

Circle Oil, the international oil and gas exploration, development and production company, announced the appointment of Stephen Ian Jenkins, 55, as Chairman with effect from 6 January 2014. Stephen was employed by Nautical Petroleum from April 2005 to December 2012 and was CEO from April 2005 to August 2012 during which period he led Nautical through the AIM listing process in 2005, followed by a successful drilling programme in the North Sea, which featured a number of important oil discoveries and appraisals (including Kraken, Greater Catcher and Mariner), several fund raising and capital events and in August 2012, the successful sale of Nautical to Cairn Energy for £414m.

Coms (LON:COMS 4.6p / £36.67m)

Coms announced the recent award of a number of new contracts that focus on the delivery of its innovative connectivity and communication services. With work beginning early in the New Year, these contracts will start making a contribution to the Company during the year ending January 2015. In summary, the contracts awarded include a contract to supply telecommunications solutions including hardware, hosted seats and broadband to a brand new division of a blue-chip multinational company. Providing services to over 1000 users, this contract will be worth £850,000 per year. Another contract is a data centre project for a leading UK university worth £460,000, with the design process starting in Spring 2014 and an infrastructure project worth £330,000 at the headquarters of a major commercial law firm. Two other projects are an infrastructure project worth £250,000 for the London offices of an international bank, with installation scheduled for completion in March 2014 and a contract to supply 600+ broadband lines each month for the next 12 months, starting today with estimated annual revenues of £108,000. Dave Breith, CEO of Coms, commented: “We are delighted to announce the award of these contracts. Across our business, we are being chosen for our expertise and application of innovative techniques. These contracts enable Coms to start 2014 with confidence in our ability to deliver end to end communication and connectivity solutions to UK industry. We anticipate 2014 will be a transformational year for Coms and we look forward to announcing more contract wins as the year progresses.”

Corac Group (LON:CRA 10.375p / 43.83m)

Further to the Company’s announcement on 2 December 2013 detailing the Firm Placing to raise gross proceeds of £11.0m and the Open Offer to raise up to an additional £2.1m from new and existing investors, the Company confirmed that the Open Offer is now closed in accordance with its terms. The Company had received valid acceptances in respect of 4,524,078 Open Offer Shares, representing a take up of approximately 22 per cent of the total Open Offer Shares. In addition, the Board is also pleased to announce that at the General Meeting of the Company, all resolutions put to Shareholders in relation to the Firm Placing and Open Offer were duly passed.

CPPGroup (LON:CPP 8.5p / £14.59m

CPPGroup published a statement prior to entering its close period for the year ended 31 December 2013. Underlying operating performance for the Group has continued in line with the trends outlined in the Group’s Interim Management Statement, published on 30 October 2013. As previously stated, the operating environment continues to be challenging and the Group’s performance for 2013 remains in line with previous guidance. The Group is in the early stages of repositioning the business and remains focused on realigning the business model and cost-base whilst successfully completing the proposed Scheme of Arrangement to review claims and, where appropriate, pay redress to customers. Significant risks and uncertainties remain in the short to medium term, particularly in relation to the Scheme, liquidity and the on-going challenges of the operating environment. Total costs and provisions made in the Group’s financial statements for customer redress and associated costs have increased by £10.0m to £65.8m. This additional provision reflects the Group’s latest estimate of customer redress and associated costs. Charles Gregson, Non Executive Chairman, has notified the Group of his intention to step down from the Board in due course. Charles will remain in post until an orderly succession and an appropriate handover has been completed. A process to identify a new Non Executive Chairman for the Group will commence immediately.

Crawshaw Group (LON:CRAW 19.5p/£11.27m)

Crawshaw Group, the meat focussed retailer, provided an update on current trading. On the 19th of November 2013, the company reported that their like for like sales for the seven weeks since 26th September were up 18 per cent. Over the Christmas trading period, the company’s like for like sales for the seven weeks to 29th December 2013 were up 21 per cent, at a higher gross margin than before. With a focus on cost control, the company now expects the out turn for the full year to end January 2014 to be materially higher than the current market forecast. The company also reported that on 25th November they opened a further retail outlet, in the new Sheffield covered market, which is trading positively, and that they are close to completing the lease on a retail premise, also in Sheffield.

DDD Group (LON:DDD 6.375p/£9.1m)

DDD Group, the 3D solutions and advanced imaging company, is hosting demonstrations of the latest TriDef powered 3D mobile and Smart TV apps and newest 2D video pre-processing solutions in a suite at the Venetian Hotel at the 2014 International CES, which opened on 7th January in Las Vegas. The latest solutions include a new TriDef 3D Smart TV app that enables popular 2D Android games to be downloaded and played in 3D on a 3D capable Smart TV. The app also enables normal video and photos to be converted to 3D automatically in a similar manner to DDD’s widely used PC and smartphone/tablet solutions. The new app will be demonstrated on a Smart TV system that has been provided by one of DDD’s Smart TV OEM partners based in China. DDD will also be demonstrating a new video pre-processing solution that has resulted from its partnership with InterDigital Inc. announced in September 2013. The solution will be demonstrated on both Smart TV and the latest Google Nexus 7 Android tablet and combines DDD’s depth-based video pre-processing with InterDigital’s adaptive streaming technology to deliver bandwidth savings in excess of 20 per cent when streaming 2D video to Smart TVs and smartphones/tablets. In addition, DDD is debuting two new products at CES 2014 aimed at the growing market for connecting PCs and mobile devices to Smart TVs and the increased use of social media to share video and game experiences.

Densitron Technologies (LON:DSN 5.875p / £4.06m)

In August 2013, Densitron announced that it expected to achieve an operating profit ahead of that achieved in 2012. This expectation was based on production orders for business that at that time was in its pre-production phase. However, several of these projects have not converted into mass production as quickly as anticipated. As a consequence of this, there is a substantial profit shortfall in the UK as against previous management expectations. While it is still expected that the Group will remain profitable at an operating level, exceptional costs relating to the settlement of the lease dispute in Newcastle are such that the Company will report a loss for the current year. Operational improvements in the second half were insufficient to offset the loss incurred as a result of the Newcastle claim and the net loss for the period is expected to widen against the position described at the half year. Business in the US and Japan has been in line with or better than its expectations albeit that the contribution from Japan will be affected by the fall in the yen exchange rate against the US dollar. Jan Holmstrom, Chairman, commented: “2013 has been a difficult year for the Company. Challenging UK market conditions were compounded by costs of the settlement in relation to the property in Newcastle. Nevertheless the underlying business remains profitable operationally and with a strong pipeline we are optimistic for 2014.”

Earthport (LON:EPO 37p/£148m)

Earthport, the cross-border payments service provider, and Bank of America Merrill Lynch (BoAML), a leader in global payments and transaction services, have signed a multi-year agreement to expand BoAML’s low value clearing capabilities globally and to improve the efficiency of its high volume, low value payments. Earthport is already an existing key supplier to BoAML. The minimum revenue to Earthport is $11.3m, with the majority of the revenue anticipated within the first 30 months of the agreement. This follows an initial agreement with BoAML in December 2012 for a specific payments service in North America.

eServ Global (LON:ESG 44.25p/£110m)

eServGlobal, which offers mobile money solutions, has a formed a joint venture with MasterCard and BICS called HomeSend, which will enable consumers to send money to and from mobile money accounts, payment cards, bank accounts or cash outlets – regardless of their location or that of the recipient. The HomeSend JV will leverage the current HomeSend platform, a remittance hub based on eServGlobal technology and developed as part of a strategic partnership between eServGlobal and BICS. The HomeSend platform was first to market in offering international mobile remittances. Today, HomeSend has live deployments in fifty countries and commercial contracts with mobile network operators and money transfer operators that represent more than 1.2bn subscribers – the equivalent of one in seven of the world’s population – and 200,000 cash agents respectively.

Futura Medical (LON:FUM 74p/£57m)

Futura Medical, the healthcare company focused on advanced transdermal technology, has signed an exclusive licensing agreement with Sweden’s RFSU AB for the marketing and distribution of CSD500, Futura’s novel condom, in Sweden, Norway, Finland and Denmark. This agreement is in line with Futura’s strategy of licensing CSD500 to condom distributors that hold leading positions in their regions. RFSU AB is the market leader in the four Nordic countries included in this agreement. Regulatory authorisation in all of the countries included in this agreement is provided by CSD500’s CE mark, which was awarded earlier this year. Under the terms of the agreement, RFSU AB will hold the rights to manufacture, market and distribute CSD500 in Sweden, Norway, Finland and Denmark. The financial details of the agreement are not being disclosed although Futura will receive an upfront payment and royalties on all product sales along with certain minimum performance guarantees.

Imperial Innovations Group (LON:IVO 375p /£373.69m)

Imperial Innovations announced that its portfolio company Cell Medica’s cell therapy Cytovir ADV has been awarded a positive opinion by the European Medicines Agency’s Committee for Orphan Medicinal Products. The EU’s Orphan Medicinal Product Designation is designed to promote the development of drugs that may provide significant benefit to patients suffering from rare, life-threatening diseases. The designation also provides eligibility for protocol assistance, possible exemptions or reductions in regulatory fees during development, and ten years of market exclusivity from product launch in the EU.

Intandem Films (LON:IFM 0.36p/£1.4m)

Intandem Films, the London based international film group, has provided an update following the American Film Market (AFM), where the company marketed a number of new films from its growing slate. The company has grown its portfolio in recent months – with the number of films on its slate rising from nine in June 2013 to twenty in December 2013, eight of which are fully funded. Intandem remains fully focused on growing contracted sales, which feed through to earnings via fees and commissions. AFM is expected to result in standalone gross profits of approximately US$220,000. Total revenue to 23rd December 2013 reached c.£104,000 (unaudited) in the new financial year beginning 1 July 2013 which excludes AFM revenue expected to be recognised in H2.

Jubilee Platinum (LON:JLP 3.1p/£12.04m)

Jubilee Platinum, the AIM and AltX quoted Mine-to-Metals specialist, announced that the Middelburg Smelter operation has achieved a new record production rate – more than 35 tons of Ferronickel metal within a single 24-hour shift – exceeding the previous record of 26 tons of metal. This follows the Company’s recent announcement (dated 23 December 2013) that it had secured funding for the final phase of the smelter renewable program, which includes the expansion of the Middelburg Smelter operation to three operating ARC furnaces. Two of these furnaces will be dedicated to the production of ferronickel metal and the third furnace to the production of ferrosilicon metal, thereby increasing the total targeted smelter design capacity to 13,900 tons of metal per annum. All three furnaces have been fully contracted. With proceeds in place to fund the commissioning of the remaining third ARC furnace at Middelburg, the Board of Jubilee believes that the Middelburg Smelter is in a strong position to enhance its earnings profile. With a view to expanding its access to platinum containing material, Jubilee also announced that the Company has entered into a £10m Equity Finance Facility which can be used at the Company’s sole discretion, over a commitment period of 60 months.

MediaZest (LON:MDZ 0.365p / £3.34m)*

MediaZest, the creative audio-visual agency confirmed the end client for the large project announced by the Company on 10 April 2013 is The Coca-Cola Company. As previously stated, the project delivery is proceeding successfully and is scheduled to complete by the end of May 2014. Unaudited results for the six months ended 30 September 2013 were introduced also just before Christmas. On 13 December, the Company announced a conditional placing at 0.35p per share to raise £865,000 and a proposed issue of new shares through the conversion of loan interest amounting to £166,179 at a price of 0.35p per share. Revenue for the period was £1,572,000 (2012: £964,000) and the group made a loss for the period after taxation of £183,000 (2012: £239,000). Gross profit was £576,000 (2012: £461,000). The basic and fully diluted loss per share was 0.033 pence (2012: 0.073 pence). The results for the period reflect a significant improvement in revenue compared to the corresponding period last year. Top line revenue for the period increased 63 per cent; this growth was achieved through the large contract win detailed above, in addition to further work with existing customers such as Samsung, O2, Kuoni and JD Sports and new projects from growth areas such as the corporate market. The Group has made good progress in the last 12 months, and the recent placing will allow MediaZest to capitalise upon the opportunities before it, both in driving additional business and developing new products for which the Board believes there is a substantial market.

MoneySwap (LON:SWAP 0.8p/£3.41m)

MoneySwap, the provider of payment solutions to online and point of sale merchants licenced for UnionPay in the UK, announced that it has signed a Payment Service Provider (PSP) agreement with SoEasyPay Europe Limited, a leading global independent payment services provider. The PSP Agreement, which will offer SoEasyPay customers UnionPay functionality through MoneySwap’s UnionPay gateway, will provide the Company with access to SoEasyPay’s established merchant base, as MoneySwap looks to capitalise on the rapid increase in Chinese consumer spending in the UK. SoEasyPay is one of the major payment service providers on the international market, and has established a strong supplier base of banks in the UK and Europe. Through the PSP Agreement, which is for an initial term of five years, SoEasyPay’s merchants will now be able to process UnionPay transactions through MoneySwap’s UnionPay gateway. The UnionPay transactions will firstly be routed to the PSP gateway, then to MoneySwap’s gateway, from which they will be directed to UnionPay; with a fee generated for MoneySwap for every transaction processed using the Company’s payment gateways.

MTI Wireless Edge (LON:MWE 7.8p/£4.06m)

MTI Wireless Edge, the developer and manufacturer of sophisticated antennas and antenna systems, announced that it has received a US$1.0m order from a major customer of its Commercial Division. The order is for delivery in 2014. The Company is also announced that its revenues for the year ended 31 December 2013 will be slightly ahead of market expectations.

NetDimensions (Holdings) Limited (LON:NETD 69.75p / £26.16m)

NetDimensions, provider of performance, knowledge, and learning management systems, gave a trading update for the 12 months to 31 December 2013. Sales revenue and invoiced sales for the period are likely to be substantially higher than for the prior year. The Company’s management expect to report full-year 2013 GAAP revenue comfortably in excess of the consensus forecast of US$15.8m and to report invoiced sales of some US$17.6m. These results were helped by a particularly strong performance in the second half with both sales revenue and invoiced sales growing by more than 20 per cent from the second half of 2012. In addition, the full year loss before interest and certain non-cash items will likely be substantially lower than current market expectations. The Company ended 2013 with no debt, more than US$7.7m in cash and some US$6.6m in short-term receivables. The Board is particularly encouraged by the performance of the Company’s Software as a Service (SaaS) business. SaaS sales revenue in the period is likely to be in the region of US$6.1m (2012: US$4.5m), an increase of 36 per cent over the prior year. The shift to SaaS is a result of the Board’s strategy to position the Company as a primarily SaaS business with the benefits of more predictable recurring revenue and greater opportunities for up-selling.

Richland Resources (LON:RLD 3.625p/£4m)

Richland Resources, the gemstones producer and developer, has announced that it is proposing to raise up to £4m (£3.9m net of expenses) through the issue of up to 118m shares by way of a Placing and Open Offer at an issue price of 3.4p. Minimum proceeds of £2m (before expenses) pursuant to the Placing and the shares has been committed by Directors and existing shareholders under the Open Offer. Minimum proceeds, together with cash and facilities and cash generated from operations will fund capital expenditure at the TanzaniteOne Mining Ltd. mine site to allow the restart of activities at two recently recovered mine shafts, fund expansion of operations and settle royalty claims and provide additional working capital. Additional proceeds, in excess of the minimum, would be applied towards an accelerated capital expenditure programme at the mine site and its diversification programme, including the development of the Tsavorite project and the potential option exercise over the sapphire project. The company has recently signed agreement with the State Mining Corporation (STAMICO) to aid endeavours to curb illegal mining operations.

Shaft Sinkers Holdings (LON:SHFT 19.25p / £9.14m)

Shaft Sinkers, the international shaft sinking and underground construction group, announced it has been awarded additional work by Afplats on its existing Leeuwkop project. The scope of the work includes the continuation of sinking activities on the main shaft at Leeuwkop to a depth of 984m from the current level of approximately 700m. The contract, which commences immediately, is scheduled to be completed in June 2014 and has a total value of £2.2m. The contract is on a rates basis. Today’s announcement follows a previous contract extension at Leeuwkop in August 2013 under which the Group introduced revised working practices that have resulted in cost savings for the client whilst also gaining significant time on the project schedule. The additional work is in line with management’s expectations for new work and contract extensions, to be secured during the year.

Solid State (LON:SSP 289p / £23.79m)

Solid State, the supplier of specialist ruggedised computers, electronic components, antennae, microwave systems and battery power solutions, announced an acquisition and placing. The Company has agreed terms, to acquire the entire issued share capital of 2001 Electronic Components Limited (2K1) for an initial cash consideration of £2.0m with a further payment of up to £400,000, subject to an adjustment of net asset value on completion. In its audited results for the year ended 31 December 2012, 2K1 reported turnover of £6.8m, an operating profit before management charge of £0.64m and a profit after tax of £59,000. In its management accounts to 30 September 2013 it had recorded turnover of £5.4m. One division of the 2K1 business, C1 Systems, is not being acquired. It contributes approximately £750,000 of turnover and makes a small loss. Solid State expects there to be immediate cost savings of circa £300,000 on the acquisition and that there will be the potential for other operational efficiencies in the medium term. The Directors expect that the acquisition of 2K1 will be earnings enhancing for the Group in FY 2014/2015. The Company also announced that it has raised approximately £2.54m (before expenses) through a placing at a price of £2.42 per share.

Waterman Group (LON:WTM 58.5p / £17.99m)

Waterman Group, the engineering and environmental consultancy, announced the restructuring of the way it manages its internal business reporting lines. The changes are fundamental to the Group’s strategy to target a tripling of adjusted profit before tax over the next three years. The Board believes that this will simplify reporting and responsibilities within the business to give enhanced leadership and management to the two distinct halves of the Group. As part of this process, Simon Harden and John Waiting have agreed to step down as directors of the plc Board with immediate effect and have decided to leave Waterman on 31March 2014 to pursue other interests. In conjunction with the above changes to the plc Board, the former UK Management Board and the International Management Board will be replaced by a Property Management Board and an Infrastructure, Environment and Energy Management Board. The Property Board will be responsible for managing the Group’s Structures and Building Services businesses in the UK, Australia, Ireland, Russia and Poland. The inaugural Chief Operating Officer of this Board will be Craig Beresford, who is currently Managing Director of the Structures business in the UK. The Infrastructure, Environment and Energy Board will be responsible for managing the Group’s Energy, Environment, Civil and Transportation businesses. The inaugural Chief Operating Officer of this Board will be Neil Humphrey, who is currently Managing Director of the Energy, Environment and Design business.

*A corporate client of Hybridan LLP

A full archive of previous weeks’ Small Cap Wraps can now be viewed on

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.