Proactive Investors - Run By Investors For Investors

Breakfast News AIM Breakfast: Challenger Acquisitions, Milestone Group, Water Intelligence, Action Hotels, IXICO, Aggregated Micro, REDX Pharma, Quantum Pharma, Solid State

Breakfast News AIM Breakfast: Challenger Acquisitions, Milestone Group, Water Intelligence, Action Hotels, IXICO, Aggregated Micro, REDX Pharma, Quantum Pharma, Solid State

What’s cooking in the IPO kitchen?
Misys— Press reports that the IPO valuation is to be cut by £1bn against an expected £5bn
TI Van Elle—The geotechnical contractor to the UK construction market is hoping to come to AIM later this month
Ascot Lloyd— The UK IFA is also hoping to join AIM later this month. Ascot Lloyd's strategy is to grow through a combination of organic growth and further targeted acquisitions.

Breakfast buffet

Challenger Acquisitions* (LON:CHAL) 16.88p £3.66m
The main market listed leader in the Giant Observation Wheel industry has updated on construction of the New York Wheel Project. $300m has been spent on the project so far. The majority of the parking garage is now operational and the terminal building is expected to be structurally complete in December. The legs for the wheel have arrived in the South Brooklyn Marine Terminal. Each of the four legs weighs 550 tonnes, measuring 18 feet wide and 275 feet tall. The grand opening is April 2018 with an estimated 3.5 million annual visitors expected.

Milestone Group* (LON:MSG) 1.32p £10.39m
The provider of digital media and technology solutions has raised £1.385m at 1.5p, a 13.6% premium to yesterday’s closing mid price. The proceeds of the Placing will be used for marketing of the newly launched Alchemy e-media platform, recruiting key staff, and additional development of the Passion Project platform.

Water Intelligence (LON:WATR) 81.5p £8.65m
The provider of non-invasive leak detection and remediation solutions, is pleased to announce a partnership as an industrial affiliate  of the Institute for Molecular Engineering at the University of Chicago (IME).  Water Intelligence and IME plan to collaborate on the commercialisation of technology for potable and non-potable water applications.  FYDec16E revenues of £7.48m and EPS of 6.26p. PE13x.

Action Hotels (LON:AHCG) 52p £76.77m
The owner, developer and asset manager of branded three and four-star hotels in the Middle East and Australia, is pleased to announce that ibis Styles Brisbane Elizabeth Street has won a "Best Economy Hotel" award at the 2016 Hotel Management Awards. HM Magazine described Ibis Styles Brisbane as a "prime example of how new-build hotels can thrive and tap into the modern day economy traveller".  FYDec16E revenues of £52.3m and PBT of £0.98m.

IXICO (LON:IXI) 23.5p £6.2m
The brain health company, has signed a new contract worth US$1.2m with a top 15 global pharmaceutical company for advanced imaging clinical trial services in a rare neurodegenerative disease, progressive supranuclear palsy ("PSP").   The project is for a Phase IIa clinical study of patients in the early stages of PSP to develop a first-in-class therapy that could prevent further degeneration and will utilise IXICO's TrialTracker™ and Assessa® digital platforms to collect and analyse MRI data from specialist imaging centres across Europe & North America.

Aggregated Micro (LON:AMPH) 68p £21.2m
The specialist in the sale of wood fuels and the development of distributed energy projects, announces that it has secured further funding for the financing of its biomass boiler portfolio and future grid balancing projects from Aggregated Micro Power Infrastructure 2 plc ("AMPIL2"), a newly launched vehicle which has raised an initial £10.17 million in the form of 8% loan notes, listed on the Cayman Islands Stock Exchange. There are no forecasts in the market.

REDX Pharma (LON:REDX) 47.75p £44.74m
The drug development company, has identified a drug development candidate for its reversible Bruton's tyrosine kinase ("BTK") inhibitor program. The compound, named RXC005, has the potential to treat the majority of patients suffering from chronic lymphocytic leukaemia ("CLL"), including those who become resistant to the increasingly used treatment ibrutinib. The Company will now progress studies to prepare the RXC005 program for first-in-human clinical trials. These trials are currently expected to commence early 2018.

Quantum Pharma (LON:QP) 34p £42.5m
The service-led, niche pharmaceutical developer, manufacturer  and supplier has announced a proposed placing of £15m at 34p, a small premium of 0.7%. The Placing Shares are being offered by way of an accelerated bookbuild. The Board believes that the Net Proceeds of the Placing will reduce the Group's net debt to a more appropriate level for a business of Quantum's type and size. Net debt was £23.8m at 31 July. FYJan17E revenues £83.6m and PBT of £6.9m, 1.47p dividend.

Solid State (LON:SOLI) 440p £37.2m
HYSep16 trading update  from the  supplier of specialist industrial/ ruggedised computers, electronic components, secure communications systems and battery power solutions to the electronics market. Expects H1 ahead of the equivalent period in 2015 and consistent with market expectations for FYMar17 and a strong debt free balance sheet.  The Group had an order backlog at 30 September 2016 of £14.8m, comprising £12.7m of underlying revenue and £2.1m of Creasefield revenue, acquired in June 2016. FYMar17E rev £44.1m. EPS 34.45. 12.7xPE.

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 Conduct Authority 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 Financial Conduct Authority) 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 Financial Conduct Authority).

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 Conduct 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