Proactive Investors - Run By Investors For Investors

Breakfast News - Versarien, Benchmark Holdings, Midatech, PHSC, Distil and others

Breakfast News - Versarien, Benchmark Holdings, Midatech, PHSC, Distil and others

What’s cooking in the IPO kitchen?


Anexo -specialist integrated credit hire and legal services group. Offer TBA. Due 19 June.

i-nexus—develops and provides strategy execution software to assist global enterprises in effective execution of their strategic plans and initiatives looking to jon AIM. Offer TBC, expected 19 June

Yellow Cake will use its expertise to generate value through the ownership of physical U3O8 (Uranium) together with a range of activities and opportunities connected with owning physical U3O8. Acquiring supply contract for up to $170m. Offer TBA.

Tekmar— technology provider of protection systems for subsea cable, umbilical and flexible pipes and offshore engineering services—Offshore wind farms and Oil & Gas. Revenue of £21.9m and Adjusted EBITDA of £4.9m Offer TBA

Knights Group— UK regional legal and professional services businesses. FYApr18 rev  £34.9 million and adjusted operating profit was £6.8 million excluding Turner Parkinson (acquiring on IPO).  Offer TBA

Aquis Exchange—a founder-led, pan-European Multilateral Trading Facility and exchange and regulatory technology developer and service provider is looking to join AIM. Offer TBC, expected 20 June.

TransGlobe Energy Corporation—an independent international upstream oil and gas company with headquarters in Calgary, Canada is looking to join AIM. No Capital to be raised, market cap of £131m. Expected 29 June

Block Energy— UK based oil exploration and production company whose main country of operation is the Republic of Georgia.  Raising £5m at 4p. Mkt cap £10.3m. Due 11 June.

Strongbow Exploration (TSX:SBW) intends to dual list on AIM.  Holds rights to the South Crofty underground tin mine, a former producing tin mine located in the towns of Pool and Camborne, Cornwall . The project is estimated to require the Company to raise £25 million over the next 18 months to progress to a production decision. Offer TBS. Due June.

Main Market (Premium)

Utilico Global Income—  new actively managed income investment trust raising up to £100 million. Due 22 June.

Amigo Holdings—The pioneer of guarantor loans now lending c. £470m per annum. Secondary Sell down. Pricing TBA


Breakfast Buffet

  Papua Mining (LON:PML) 0.9p £3.08m

Geophysical surveys at Marengo confirm large gold targets.

An emerging chargeability high at around 80m depth beneath One Mile Mountain may be indicative of the top of a porphyry gold / copper system. The chargeable anomaly is 400 m long and 200m wide;

Previous rockchip sampling at One Mile Mountain returned gold assays of 30.4 g/t, 21 g/t and 7.5 g/t and copper assays of 3.99%, 3.15% and 1,52%, suggesting that the chargeability and resistivity patterns potentially highlight a large gold / copper system;

A strongly resistive feature which surrounds One Mile Mountain is a possible vein system and perhaps the source of the surface geochemical high grade gold.

Versarien (LON:VRS) 117.75p £175.05m

“The advanced materials engineering group, is pleased to announce that it has signed a wide ranging agreement with Arrow GreenTech Ltd, an Indian listed company, covering a variety of the Company's graphene products and activities. Arrow GreenTech is an India-based holding company who are a leading global manufacturer of cast water-soluble film, providing solutions and applications for sectors including agrochemicals, construction, chemical, embroidery, health & hygiene and 3D printing.  Additionally, Arrow GreenTech have patented technology that is used in secure products such as passports, bank notes and security paper.” Also  today  formal launch of Graphinks, the latest addition to Versarien's range of 2D materials. We could see no forecasts.

Benchmark Holdings (LON:BMK) 60.1p £314m

Agreed acquisition of 49% interest in strategically important Chilean salmon breeding and genetics JV for a total cash consideration of $16.25m. JV is expected to be immediately and continuously earnings accretive. Anticipates adjusted EBITDA contribution:

* in the four months to 30 Sept 2018 of £1.81m

* for the first full year to 30 Sept 2019 of approx. £2.4m

* of £4.1m at full capacity

Conditional £19m placing at 55p, c.8.5% less than yesterday’s closing mid price.

FY Sep 18E rev £156.7m and £2.58m pre-tax loss.

Crusader Resources (LON:CAS) $0.04 $18.08m

Update on the recent drilling campaign at three previously un-drilled prospects within the Juruena Gold project (Brazil) area.

Significant Results

0.7m @ 12.22 g/t Au from 29m in JRND-071 at the Daniel target

1.57m @ 3.17 g/t Au from 37m in JRND-072 at the Izau III target

3.03m @ 0.60 g/t Au from 23.5m in JRND-073 at the Panelas tar

Current JORC inferred resource of 260,900 oz of contained gold at an average grade of 6.3 g/t.

Concurrent  Technology (CNC.L) 85p £61.81m

The “specialist in the design and manufacture of high-end embedded computer boards for critical applications, announced two new VME boards for long life-cycle applications. The VME standard was launched several years ago and has proved to be extremely robust and dependable and so VME based products have been widely deployed for a variety of uses.

The two new VME processor boards are based around the very latest Intel® Xeon® six-core and four-core processors and incorporate a variety of state of the art features. Both new boards will allow customers with VME systems to upgrade performance and functionality without having the expense and disruption of re-designing their entire system. These VME boards are particularly aimed at the defence market where it is anticipated that the life cycle of these high margin products will extend well beyond 2030.” PE c.12x, yield c.3%.

Midatech (LON:MTPH) 29p £17.7m

“The international specialty pharmaceutical company focussed on developing and commercialising products in oncology and immunotherapy, today announces that, further to the Group's announcement dated 20 Dec 2017, patient enrolment is now underway in its Gelclair® Phase IV trial in the US.”

“The trial has been designed to study the effects of Gelclair® (bioadherent oral gel) on various aspects of oral mucositis in patients undergoing stem cell transplant therapy. Results from the study will provide valuable data on the treatment of OM in SCT patients and could significantly increase the use of Gelclair in the in-hospital setting.” FYDec18E rev £9.2m and £16.25m loss.

PHSC (LON:PHSC) 10.5p £1.54m

Trading update from the provider of health, safety, hygiene and environmental consultancy services and security solutions to the public and private sectors.

Consolidated Group revenue for the period was approximately £7.01m (31 March 2017: £7.16m).  The decline in revenues is due to the asbestos-related operations of Adamson’s Laboratory Services Limited being discontinued during the year, resulting in ALS’s revenues being approximately £0.44m lower than in the previous year and impacting the Group’s revenue by a corresponding amount.

The Group achieved a positive EBITDA of approximately £184,000 for the year ended 31 March 2018, before allowing for £47,000 of redundancy costs associated with the closure of ALS, (31 March 2017: loss of £99,767).

  Distil (LON:DIS) 2.2p £11.04m

Final results from the owner of premium drinks brands. Turnover, supported by increased marketing investment, increases 23% to £2,014k from £1,642k. Operating profit of £157k compared to prior year profit of £10k.

The Group's position at the financial year end remains robust showing net assets of £3.01m (2017: £2.81m) including cash reserves of £1.03m (2017: £910k).

Working hard to minimise Brexit impact.

FY Mar 19E rev £2.48m and PBT £0.35m.

Hybridan LLP Disclaimer

This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity and is not a personal recommendation to anyone. Recipients should make their own investment decisions based upon their own financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor. The information contained in this document is based on materials and sources that are believed to be reliable; however, they have not been independently verified and are not guaranteed as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information in this document nor should it be relied upon as such. Any and all opinions expressed are current opinions as of the date appearing on this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document. This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, does not constitute  “independent investment research” for the purposes of the Financial Services Authority (FSA) rules. The individuals who prepared this document may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, directors, officers  and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments. In the UK, this document is directed at and is for distribution only to persons who (i) fall within Article 19(5) (persons who have professional experience in matters relating to investments) or Article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) or (ii) are Professional Clients or Eligible Counterparties (as those terms are defined in the rules of the FSA) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as “relevant persons”). This document must not be acted on or relied up on by persons who are not relevant persons.  For the purposes of clarity, this document is not intended for and should not be relied upon by persons who would be classified as Retail Clients (as defined by the rules of the FSA). Neither this document nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of UK or US securities law, or the law of any such other jurisdictions. Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, directors, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests. Neither the whole nor any part of this document may be duplicated in any form or by any means. Neither should this document, or any part thereof, be redistributed or disclosed to anyone without the prior consent of Hybridan LLP. Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Services Authority and is a member of the London Stock Exchange.  Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.


© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use