Proactive Investors - Run By Investors For Investors

Breakfast News - AIM Breakfast : EU Supply, Fastjet PLC, Horizon Discovery Group PLC, BlueJay Mining PLC, Magnolia Petroleum PLC, ProPhotonix, Stanley Gibbons, Crimson Tide, Flying Brands Ltd

Breakfast News - AIM Breakfast : EU Supply, Fastjet PLC, Horizon Discovery Group PLC, BlueJay Mining PLC, Magnolia Petroleum PLC, ProPhotonix, Stanley Gibbons, Crimson Tide, Flying Brands Ltd

What’s cooking in the IPO kitchen?

AIM

Touchstone Exploration— Oil exploration and production company active in the Republic of Trinidad and Tobago.  Interests of approximately 90,000 gross acres. Production c. 1,300 boepd. Raising £1.45m. Expected mkt cap £7.5m. Due 26 June.

I3 Energy –Schedule 1. Independent oil and gas company with assets and operations in the UK.  Offer TBC, 7 June admission.

Verditek— Schedule 1 update. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Issue price 10p.  Admission in late May.

Tiso Blackstar Group—Schedule 1 update. Media, entertainment and marketing solutions group/ £160m mkt cap. Admission only. Expected late June.

Main Market Premium Listing

Curzon Energy—Report on Proactive Investors of intended LSE float this year  with acquisition of  coal bed methane assets in Oregon. Looking to raise £3m plus.

NLB Group—financial and banking institution based in Slovenia, with a network of 356 branches. Seeking Ljubliana Stock Exchange listing with GDRs on the LSE. Expected mid June.

Flying Brands (LON:FBDU)—Prospectus approved by FCA. RTO of Stone Checker Software,  supplier of technology solutions in the field of kidney stone analysis and prevention. Has raised £550k at 3p. Subject to GM on 15 Jun.

AEW UK Long Lease REIT—Intention to Float. Up to £150m raise. Admission early June. UK specialist and alternative property

Kuwait Energy— $150m raise plus vendor offer. Admission due June.  2p reserves 810.0 mmboe

Main Market Specialist Funds

PRS REIT—Private rental sector REIT raising up to £250m.  Admission due 31 May  

 
 
Breakfast buffet

Magnoloa Petroleum (LON:MAGP) 0.1p £1.92m

The US focused oil and gas exploration and production company, is pleased to announce it has received proposals to participate (minority stakes) alongside Marathon Oil in the drilling of six low risk, high impact wells to the Bakken and Three Forks Sanish formations in North Dakota. These new wells represent a step up in the level of opportunities the Company has been seeing recently. Based on historic production of offset wells, each of the six new wells may generate: a Rate of Return of between 29.51% to 34.61% and Return on Investment over life the time of each well of between 2.29 and 2.47 times. $41/barrel breakeven.

Bluejay Mining (LON:JAY) 14.19p £103.3m

The Company with projects in Greenland and Finland, announced the completion of the public pre-consultation phase of the permitting process for the Pituffik Titanium Project in Greenland. Having confirmed that Pituffik represents the highest-grade large-scale ilmenite project globally, Bluejay is focused on the core deliverables for 2017. These include determining the volume characteristic of Pituffik, delivering a bulk sample to potential offtake partners, completing the Feasibility Study and lodging an application for an Exploitation Licence.   The next stage involves a public consultation of the final draft Environmental and Social Impact documents.  Accordingly, the Company is now preparing these documents and further updates will be made in due course. 

Crimson Tide (LON:TIDE) 3.42p £15.5m

The provider of mpro5 ‐ Smart Mobility as a Service, updated on progress with its international expansion strategy, which it has previously indicated will drive further growth opportunities. Strategic partnerships with tactical investments are being made in new geographies, complementing the organic growth being delivered in the UK.  200 subscriber deal closed through Vodafone partnership in Ireland with large state-sponsored company. Key appointment in US and participation in ‘CAIRN’ Alliance focussing on digitalised healthcare.  Pilot project in Netherlands. First contract in Denmark with global food processing company. Enterprise level opportunities in UAE. Good progress with new partner Mobilise IT.  Appointment of Barry Finnegan, an IoT strategist.

EU Supply (LON:EUSP) 15.25p £10.33m

AGM Statement from the e-procurement SaaS provider . "2016 saw the achievement of the Board`s target of monthly run rate profitability by 31 December 2016. The focus for 2017 remains to build revenue on this strengthened base to secure increasing European market share with a profitable future. I am happy to report that in the first four months of 2017, revenues have grown at over 25 per cent. compared to the same period in 2016.  As of 31 December 2016, 71 per cent. of revenues were of a recurring or repeated nature which, together with the Group's promising pipeline of opportunities, gives the Board confidence that the strong revenue growth will continue for the rest of this year. “ FYDec17E £4.3m rev and £0.15m loss.

 

ProPhotonix  (LON:PPIX) 14.12p £12.83m

The  high technology designer and manufacturer of LED illumination systems and laser diode modules, with operations in Ireland and the United Kingdom, is has now delivered more than 100,000 custom laser diode modules designed specifically for obstacle detection in a robotic guidance application.  Critical to ProPhotonix' success in this application is the ability to meet a number of demanding requirements of the laser beam to ensure successful obstacle detection. "This is an excellent example of how ProPhotonix works with OEMs to understand the key requirements for their application and then utilizes its strengths and experience to design a cost effective custom solution to consistently deliver on those requirements.” FYDec17E rev $17.9m, PBT $1.8m. 

Fastjet (LON:FJET) 16.37p £54.99m

FYDec16 results from the low-cost African airline. Revenues increased by 5% to US$68.5m despite route rationalisation.    Aircraft utilisation constant year on year at 11.2 hours during peak mths.   Costs increased by 29% caused by increased capacity and start-up losses on new routes in 2016.    Negative cash flow from operations of US$(52.3m) (2015: US$(36.9m)), primarily impacted by high costs. Cash of $12.9m as at 30 April 2017 benefiting from January fundraise. “The Board is pleased that the initial benefits of the Stabilisation Plan are already being realised and remains confident that we have the necessary industry and market-specific skills and platform to achieve our vision of being a successful pan-African airline, based on the Low-Cost Carrier (LCC) model.” No forecasts.

The Stanley Gibbons Group (LON:SGI) 11.5p £20.6m

Subsidiary Mallett & Son has sold its  25 per cent. interest in Masterpiece London Limited, the operator of the annual Masterpiece London art and antiques fair, to Masterpiece fo­r a total consideration of £1.4 million payable in cash. In the year to 31 March 2017 a dividend of £40,000 was received from Masterpiece and the 25 per cent. interest was held on the Group's balance sheet at £6,000. It is intended that the proceeds of the Sale will be used to further reduce bank debt, support the ongoing rationalisation programme and to provide additional working capital for the Group. This follows the announcement, on 9th May, of the sale of certain assets and liabilities of the Company's Interiors division for £2.4 million. We could see no forecasts.

Energiser Investments (LON:ENGI) 2.5p £3.1m

FYDec16 results. Gross rental up 3.9% to £160k. Administrative costs were £110,000 (2015: £50,000) due to the appointment of Dominic White and the resulting increase in activity. Finance costs fell to £208,000 (2015: £358,000) due to lower interest payments following the repayment of the funding for the development at Kingswood, Surrey. The loss before and after taxation was £211,000 (2015: £167,000) with a loss per share of 0.40p (2015: 0.38p). NAV/ share 1.41p. The Directors have decided that following successful asset management activity, rents and values have increased such that it is timely to consider a disposal.  The assets will be marketed for sale in 2017.

Horizon Discovery  Group (LON:HZD) 215.5p £207.84m

FY Dec 16 results from the specialist in the application of gene editing technologies.   Revenue of £24.1m in line with guidance up 19%. Gross margin improvement to 54% driven by increased volumes. Operational efficiencies as the Group progresses its Path to Profit strategy. EBITDA loss from Products and Services before exceptional items improved to £3.8m (FY15: £4.6m).   Closing cash and cash equivalents of £6.1m (FY15: £25.1m) underpinned by additional debt facility of £8m, undrawn at end of 2016. Q1 2017  revenue up c25% year on year, underpinning guidance of FY17 revenue between £30-35m.    Immuno-oncology set to be a powerful growth driver. FYDec17E rev £32.36m and £10.7m loss.

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