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Focusrite hopes to hit the right notes, Big Bosch win from incadea, Quantum poised for AIM

Published: 08:20 05 Dec 2014 GMT

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ACSO trading update,CGNR gold targets identified,DWHT preliminary results,Focusrite intention to float on AIM,FBT FY trading update,FUM update on Pain Relief Clinical Programme,INCA agreement worth $20m,Midatech intention to float on AIM,MSG Rank first employer and Plan B ambassador,MPOW warning & board appointment,OPTI successful completion of pre-clinical studies,Quantum Pharma intention to float on AIM,SLN technology breakthrough and trading update,TRAK interim results,TCN interim results,CHOC first day of dealings

A full archive of previous weeks’ Small Cap Wraps can now be viewed on www.hybridan.com.

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.

accesso® Technology Group (LON:ACSO)

Accesso, the technology solutions provider to the attractions and leisure industry, provided an update on recent trading.  The Group continues to perform strongly, driven by new and existing customer wins, the impact of a number of commercial performance initiatives and an improving trading environment across each of the Group's lines of business.  With the majority of the trading season now complete, the Group expects to deliver adjusted profit before tax and cash generation ahead of current market expectations.  Revenues are expected to be in line with expectations. Commenting Tom Burnet, CEO said: "I am very pleased to see our Group has continued to power ahead in the second half and I remain encouraged that our strategic endeavours continue to translate in to strong, profitable, cash generative growth.  It has been an exciting year, particularly given the integration of Siriusware and the addition of ShoWareTM to our team.  With much opportunity to target here, and given the health of our sales pipeline, I have every confidence that 2015 will tell a similar or better story."

Conroy Gold and Natural Resources (LON:CGNR)*

Conroy Gold and Natural Resources, the gold exploration and development company focused on Ireland announced that the results of a structural interpretation of High Resolution Satellite Imagery (RapidEye Imagery), in conjunction with geological and airborne geophysical data sets has identified a series of gold targets on its exploration licences in the Longford-Down Massif. Twenty one gold exploration targets were identified by the RapidEye Imagery. The targets were based on a series of technical criteria including intersections between the Orlock Bridge fault zone, thought to be the main geological structural control over mineralisation in the area, and transverse geological structures. This information on lineaments and their orientation may be of significance in further exploration of the licence area where the Company has already discovered a thirty mile gold trend, including four gold-in-bedrock targets and is currently planning to develop its first operational gold mine at Clontibret in County Monaghan, as set out in the Company's announcement on 19 September 2014.

Dewhurst (LON:DWHT)

Dewhurst reported that it had bounced back from last year's disappointing results to achieve sales up 7 per cent to £46.6m (2013: £43.7m), operating profit before amortisation of acquired intangibles was £5.5m (2013: £4.1m before goodwill write down) and profit before tax was £4.8m (2013: £2.2m) up 117 per cent. All current and prior year profit figures have been reduced this year by up to £0.4m due to a change in the standard for reporting pension costs. The growth in sales was predominantly in the UK with all three UK companies recording double digit sales increases. The Company also benefited from a good first full year of sales from last year's acquisition of Dual Engraving in Perth, Western Australia. All but one of the overseas operations registered sales growth in local currency, but the strengthening pound somewhat reduced the positive impact of the local performance. The board are again proposing an increase of 1p, giving a full year dividend of 9.00p (2013: 8.00p) which is 12.5 per cent up on last year. 

Focusrite (TBC/TBC)

Focusrite, the global music and audio products group supplying hardware and software products, recently announced its intention to float on AIM.  The products which are used by professional and amateur musicians, enables the high quality production of music. The Group has two established and rapidly growing brands: Focusrite and Novation. The Focusrite brand makes audio interface and other products for audio recording musicians. The Novation brand allows its customers to make electronic music using synthesisers and computer-enabled technology.  The Group has a global customer base with a distribution network covering approximately 160 territories. Focusrite is headquartered in High Wycombe, United Kingdom with a marketing subsidiary in Los Angeles, United States and has over 140 employees.

Forbidden Technologies (LON:FBT)

The developer and provider of the powerful cloud video platform, Forscene, updated on trading and the upgrade of its core technology. Following its fund raising last year, and the corresponding sharply increased investment this year in sales, marketing, consumer and platform development, Forbidden Technologies can report the release of its upgraded Forscene video platform. This upgrade has been a key operational target for the Company during 2014 and the Board is pleased to today confirm the release. The upgrade incorporates a new look and feel to the Forscene editor. Combined with the higher resolution video shown earlier in the year, this is a major step to making the Forscene editor accessible to professional editors around the world in a variety of markets. The upgrade also incorporates a neatly packaged set of web-based administrative tools. These tools allow Forscene clients to grow more easily by reducing the time and cost of managing their productions. Sales during the second half of the current financial year are expected to be broadly in line with those sales figures reported by the Company in its interim report published in July 2014, which is below previous expectations. Cash outflow will however remain in line with previous guidance. The Company will update the market in January 2015.

Futura Medical (LON:FUM)

Futura Medical, the innovative healthcare company focused on advanced transdermal technology, announced that it will shortly be making a submission to UK regulators for approval to begin a clinical study to assess the efficacy and safety of its three topical pain relief products, which have already shown rapid skin permeation in earlier studies. The products - whose active ingredients include diclofenac, ibuprofen and methyl salicylate - use the Company's novel topical delivery technology DermaSys®. It is expected that the clinical phase will commence in Q1 2015 with results available during the summer 2015. This study will compare the three products - TPR100, TIB200 and SPR300 - against placebo and/or against marketed products in a model of inflammatory pain in which the skin of healthy volunteers will be carefully exposed to a controlled amount of ultra-violet light to increase the sensitivity of the skin to pain stimuli. This approach removes some of the subjectivity and variability associated with studying pain in patients being treated for painful conditions. James Barder, Futura's Chief Executive, said: "We have already demonstrated rapid skin permeation with our topical pain relief portfolio in vitro and this study is designed to demonstrate efficacy, both against placebo and against currently marketed products. The endpoints of the study have been chosen to highlight potentially strong marketing and clinical efficacy claims, which would reinforce the products' commercial positioning. We continue in discussions with potential licensing partners in connection with our pain relief portfolio although our primary focus at the moment is the successful completion of this important study and we look forward to the start of this clinical evaluation next year." 

incadea (LON:INCA)

incadea the provider of enterprise software and services to the global automotive dealership industry, announced that it has won a multi-year agreement with Bosch China worth $20m and expected to commence towards the end of 2015. This is the first deal won as part of the global framework agreement, announced in July 2014. Patrick Katenkamp, Chief Executive Officer commented: "I am delighted that the framework agreement signed recently is already bearing fruit for incadea. This project in China is the first signed under the agreement and marks a major milestone as we enter a new market segment. It significantly expands our presence in the Asia Pacific region and our intention to become the market leader by total user numbers. I look forward to providing updates on additional agreements as incadea makes continued progress in this market segment." 

Midatech (TBC/TBC)

Midatech, the nano medicine Company focused on the development and commercialisation of multiple therapeutic products to enhance the delivery of medicines in major diseases with high unmet medical needs, recently announced its intention to float on the AIM market. These diseases include diabetes, certain cancers such as liver, ovarian and brain (glioblastoma) and ophthalmologic conditions. The Group's two platform technologies are designed to enable targeted delivery and sustained release of existing therapeutic drugs.  The Group's core technology platform is based on a patented form of gold nanoparticles that are developed to improve key parameters of existing and new drugs, target individual cell types with specific targeting agents and deliver a therapeutic payload in the cell, while ensuring this can be achieved safely.  The Group's secondary platform of sustained release technology involves the consistent and precise encapsulation of active drug compounds within polymer microspheres. The microspheres are designed to release the active drug compound into the body in a highly controlled manner over a prolonged period of time, from a number of weeks to three months and potentially longer. The Group's sustained release technology platform will be acquired through Midatech's acquisition of Q Chip Limited, effective upon admission to AIM.  The Group has developed a strong intellectual property base, operates a nanoparticle manufacturing facility, based in Bilbao, Spain, and is collaborating with a number of universities, speciality and major pharmaceutical companies to develop its platform technologies into a broad number of products in order to achieve a range of potential revenue opportunities within priority therapeutic areas.

Milestone Group (LON:MSG)*

AIM quoted provider of digital media and technology solutions announced that it has signed The Rank Group Plc as both a corporate member of the Passion Project and an employment provider to the programme. The Passion Project is an innovative digital youth engagement platform, which helps 16-24 year olds explore employment opportunities by identifying and developing their skills and passions and providing meaningful employment opportunities. The Rank Group includes the well-known British brands Grosvenor Casinos (56 casinos) and Mecca (96 bingo clubs), as well as gaming offerings in Spain and Belgium. Rank and its brands have a long history of community involvement and charitable fundraising as well as being highly successful businesses. Rank has been appointed as the lead employer of Passion Project's participants in the Leisure, Hospitality and Entertainment sector and will be making a wide range of digital and venue-based roles available for application by the participants. It is anticipated that Rank will provide in the region of 1,500 employment opportunities over the coming 12 months across a range of venues and locations nationally. Milestone also separately announced that Plan B signed to become an Ambassador and The Each One Teach One becomes a Founding Partner of Milestone's Passion Project. The week before Milestone had also announced that it had signed Erith Contractors Ltd as a Corporate Member of the Passion Project. Milestone has already enrolled over 40 Founding Charitable Partners and Youth Organisations and has now reached the point where it is opening the programme to interested Corporate Partners. Corporate Partners are engaged on an annual fee paying membership basis determined by number of staff, total assets and annual turnover. Erith Contractors Ltd, one of the first to sign-up to the partnership programme is part of the family run construction business, Erith Group. 

Mopowered (LON:MPOW)

Since the September placing, eight new target mid-tier clients have been signed up, bringing the number of new clients signed up so far in the second half of the year to 17. This number of new client wins is, however, lower than management expectations. The contract sizes for these new customers have also been somewhat lower.  Accordingly, based on these factors and a delay in certain project revenues coming through, the revenue for the second half and therefore the year as a whole is expected to be lower than the market expectation of £1.6m. Consequently, as part of a strategic review, the Board has identified significant further cost savings which it is in the process of implementing to control cost and conserve cash.  The Company also announced the appointment of a new Finance Director and Company Secretary, Richard Gordon, with immediate effect. Richard is a Fellow of the Institute of Chartered Accountants, with his most recent role having been Managing Director at Direct Health Group Limited. His previous experience working with public companies, having been Finance Director at Broadcastle (which was acquired by Siemens Financial Services Ltd and delisted in 2005) and Finance Director at Rubicon Software Group Ltd, where he had a leading role in Rubicon's Admission to AIM. He has also provided Consultancy Services to a number of companies including Eurovestech which at the time was listed on AIM. Richard will devote at least 2.5 days per week to the Company, spending more time as required. 

OptiBiotix Health (LON:OPTI)

OptiBiotix Health, a life sciences business developing compounds to tackle obesity, high cholesterol and diabetes, announced the successful completion of pre-clinical studies. OptiBiotix contracted Nizo Food Research BV, to undertake pre-clinical studies on three proprietary cholesterol lowering Lactobacillus strains that OptiBiotix has developed over the past two years. These strains have shown an ability to reduce cholesterol by between 71 per cent and 82 per cent in laboratory tests. As announced on 11 November 2014, the pre-clinical studies assessed each strain's manufacturability, gastrointestinal robustness and activity against bile salts to determine the strain(s) most likely to achieve a successful outcome in human studies of OptiBiotix's first product, a capsular food supplement.   Results of the pre-clinical studies indicated that one strain of Lactobacillus showed preferential characteristics and is now being manufactured, encapsulated and packaged in preparation for human studies, which are scheduled for January 2015. The data from the results of these further studies are expected to be available by the end of Q3 2015. Data from the pre-clinical studies also provided information which will be used to reduce the cost, timescale and development risk of future products, such as cholesterol lowering yoghurts, fruit juices, vegetable juices and cereal bars.  Nizo, which is one of the most advanced, independent contract research companies in the world,  works with small corporate food and ingredient companies to develop and produce innovative products for the food and drink industry.  

Quantum Pharma (TBC/TBC)

Quantum Pharma, the manufacturer, supplier and service provider to pharmaceutical wholesalers, retail pharmacy, hospitals, pharmaceutical companies, homecare and care home markets, recently announced its intention to float on AIM.  Quantum operates through five business units: Quantum Pharmaceutical, U L Medicines, Colonis, Biodose and Quantum Aseptics.  The Group's core business is the manufacture, procurement and supply to major UK pharmacy chains, wholesalers and hospitals of Specials and Special Obtains.  Specials are medicines which are not licensed for general manufacture, which are prescribed for a specific patient need and which are manufactured or procured, under an MHRA licence.  Group revenues in the year ended 31 January 2014 of £53.49m (2013: £48.29m) and adjusted EBITDA of £9.13m (2013: £9.16m).  For the six month period ended 31 July 2014, the Group had revenues of £27.99m and adjusted EBITDA of £5.35m.  The group is looking to raise £106.1m, resulting in a market capitalisation on admission of £125m.

Silence Therapeutics (LON:SLN)

The RNA interference (RNAi) or 'gene silencing' platform technology company which has proprietary delivery systems announced that it made a material addition to its genetic toolkit, confirming the successful production of potentially therapeutic levels of protein in vivo, in pre-clinical animal models, using messenger RNA (mRNA). This approach enables Silence to replace or restore gene expression in pre-clinical animal models, in addition to its existing capability to silence overexpressed genes with its short-interfering RNA (siRNA) platform. In its trading update, the Company announced that the translational medicine team is working to quickly translate Silence's technology into therapeutic clinical product candidates. Comprising medical doctors, biologists, business analysts and consultant key opinion leaders, this multidisciplinary team is particularly focused on collaborations with leading academic institutions which complement internal expertise and develop new models of study. The Company is progressing research on multiple drug targets and indications.

Trakm8 Holdings (LON:TRAK)

The telematics and data provider announced interim results to 30 September.  Revenues increased by 230 per cent to £8.5m with like for like revenues up 66 per cent. EBITDA increased by 367 per cent to £1.1m and PBT was £0.7m vs just above breakeven. Underlying annualised recurring revenues increased by 130 per cent to £5.3m. The results included a full six months contribution from recently acquired BOX Telematics which recorded revenue of £4.2m in the period. The Company has extended its bank facilities by a net £2m and is actively seeking further acquisitions. The outlook stated that the second half of the financial year should continue the trend of increasing revenues including service revenues, which the Company expects to be ahead of the first six months. The Board is confident in meeting market expectations for the full year.

Tricorn Group (LON:TCN)

The tube manipulation specialist, announced its unaudited interim results for the six months ended 30 September 2014. Markets remained challenging during the period, however the Group made encouraging progress across many fronts.  Revenue for continuing operations was 7.9 per cent higher than in the six months ended 31 March 2014 (the previous period) and 6.5 per cent lower than in the corresponding period last year. The UK businesses have performed well against a back drop of growing but volatile demand and in China revenues continue to grow. In the USA revenue was broadly flat on the previous period, albeit at a lower level than that seen in the first half of last year. Good progress has been made in addressing the operational issues in the US business that have held back the overall performance of the Group in the period. Adjusted LBT for continuing operations for the first half was £0.070m, a substantial improvement on the adjusted LBT of £0.528m for the previous period. Tricorn has not declared an interim dividend. In the comparative period a 0.13p dividend was declared. At 30 September 2014 Group net debt had reduced to £2.963m (30 September 2013: £3.641m).  This represented a reduction of £0.678m against the comparable date last year and £0.423m against the 31 March 2014 closing position. Business in China continues to expand whilst in the USA the new management team has made an encouraging start in creating a solid platform from which the business can develop. Market conditions are expected to remain challenging for the balance of the current year with revenue slightly lower than the first half but improved on the comparative period last year. Adjusted LBT is expected to be slightly higher than the first half of the year.

United Cacao (LON:CHOC)

United Cacao, a cacao plantation company based in Peru, recently announced its first day of dealings on the AIM market.  United Cacao Limited is the holding company for Cacao del Peru Norte SAC (CDPN), the Company's wholly owned Peruvian operating subsidiary. The Group seeks to be the world's largest and lowest cost corporate grower of cacao by the end of 2016 when it plans to complete the planting of its existing 3,250 hectare estate, of which the proceeds of the placing and subscription will finance the planting of an initial total of 2,000 hectares. The Directors believe the Company will, on Admission, be the first publicly listed pure-play cacao producer globally and the first publicly listed tropical plantation company in Latin America.  The Company, via CDPN, owns approximately 3,523 hectares of freehold agriculture land near the city of Iquitos, the capital of Loreto, Peru's northern region. Iquitos, a city of over 450,000 inhabitants, is at the headwaters of the Amazon River and is serviced by scheduled ocean-going freighters to the Atlantic, via Manaus (Brazil) and onwards to the United States. Iquitos also has regular domestic and international flight connectivity by several regional airlines and is less than two hours flight time from Lima.  The company raised £6.4m before expenses at a placing price of 128 pence per share.  The funds raised will be used to extend the Company's planted operations from approximately 320 hectares today to 2,000 hectares by the end of Q4 2015 and for general working capital purposes. 

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