Proactive Investors - Run By Investors For Investors

Breakfast News - Seeing Machines, Bacanora Minerals, Victoria Oil & Gas, Hummingbird Resources and others

Breakfast News - Seeing Machines, Bacanora Minerals, Victoria Oil & Gas, Hummingbird Resources and others

Dish of the day

TI Fluid Systems— (TIFS.L) Global manufacturer of automotive fluid storage, carrying and delivery systems seeking to raise €407m to €468m at 255p to reduce financial leverage (to approximately 2.0x net debt to Adjusted EBITDA by the end of FY 2017). Possible partial sale by Bain.    Revenue for FY 2016 was €3.3bn and Adjusted EBIT was €362.1m. Mkt cap c.£1.3bn.

Off the menu   

No Leavers Today

What’s cooking in the IPO kitchen?


AfriTin Mining—Demerger from Bushveld Minerals (BMN.L). Offer TBA. Due 6 Nov. The Uis Tin project (Namibia) is considered the flagship tin asset within the portfolio, as this was once the largest open cast tine mine of its kind in the world .

Novacyt S.A.—Sch1 from the international diagnostics group, generating revenues from the sale of clinical products used in oncology, microbiology, haematology and serology testing. Offer to raise £8.8m at 59.38p with a value of £22.4m. Expected 01 Nov.

Footasylum Ltd—UK-based fashion retailer focusing on the branded footwear and apparel markets announced its intention to seek admission to AIM. Expected value between £130m and £150m. Due Nov 2017.

Central Asia Metals (CAML) -RTO of Lynx Resources. Anticipated market capitalisation at Admission: £404.8m. Raising £113m at 230p. Acquiring the SASA zinc-lead mine in Macedonia from Solway Industries. Due 15 Dec.

OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m.

Orogen plc, to be renamed Sosandar plc on Admission. Sosandar is an online womenswear brand specifically targeted at a generation of women who have graduated from younger online and high street brands, and are looking for affordable clothing with a premium, trend-led aesthetic. Offer to raise £5.3m with market cap of £16.1m, expected 2 November 2017

OG Graphite, brownfield development-stage graphite company focused on the reactivation of its wholly-owned Kearney natural flake graphite mine and mill located 280 km north of Toronto, Canada. Offer TBA, expected late October .

Main Market Premium Listing

Arqiva Group— UK's pre-eminent national provider of television and radio broadcast infrastructure and a leading independent provider of communications infrastructure services. Revenue was £943.8 million for the year ended 30 June 2017 . Adj EBITDA £467m. V Raising c. £1.5bn primarily to deleverage.  Due in November.

Cabot Credit Management  -one of the largest credit management services providers in Europe and the market leader in the UK and Ireland with total 120-Month ERC of £2.2 billion.  Raising c.£195m. Offer TBA. Due November.

ContourGlobal LP— contracted wholesale power generation businesses, with 69 thermal and renewable power generation assets in Europe, Latin America and Africa.  In the year ended 31 December 2016 it generated $905.2 million of combined revenue and $440.4 million of Adjusted EBITDA.  Raising c.$400m. Expected November.

M7 Multi-Let REIT—Intends to raise up to £300m at 100p.  Aims to acquire and hold a portfolio of UK regional light industrial and regional office assets diversified by geography, asset type and tenants that is expected to generate stable income returns and, where appropriate, offer the potential to leverage and enhance returns through active asset management initiatives. Due 13 Nov.

Bakkavor Group  - Provider of fresh prepared food intends to float in November. FY 16 Revenue: £1,763.6 million   FY 16 Adjusted EBITDA: £146.4 million (13.7% CAGR FY 14-FY 16). Part vendor sale and primary raise of c. £100m. Price TBA.

Russia’s En+, owned by Russian aluminium tycoon Oleg Deripaska, has assets in metals and energy, including hydropower.  reported to be seeking dual London and Moscow listing raising $1.5bn

TMF Group, which provides tax, admin and legal support services, reported to be seeking London IPO to raise c. £200m.

Breakfast buffet

Rhythm One (LON:RTHM) 296p £146.7m

The advertising technology company that provides streamlined, transparent connections between advertisers and audiences through a combination of differentiated supply, innovative technology and data-driven insights, today announced details of its platform-level integration with Grapeshot, an industry leading software company using advanced probability algorithms to provide data to improve brand safety and to better target advertising campaigns. Grapeshot's data - which is integrated directly into RhythmOne's programmatic platform as part of their RhythmGuard technology - gives RhythmOne the ability to effectively filter content that brands would consider to be objectionable.  "In a programmatic environment, being able to control for brand safety is as important as being able to eliminate fraud or target to specific viewability standards," said Bhaskar Ballapragada, Head of Product at RhythmOne. FYMar18 rev £206.4m and PBT of £6.7m.

Bacanora Minerals (LON:BCN) 81.5p £108m

FYJun17 results from the  lithium exploration and development company. Delivering on objective to transform Bacanora into a global lithium producer. Strategic partnership and offtake agreement for flagship Sonora lithium project in Mexico. Feasibility Study ('FS') on course to be completed in Q4 2017 and expected to confirm Sonora occupies a favourable position on the industry cost curve. The Company has cash balances of approximately $25m report and is therefore fully funded through to the initial project development and the start of the construction stages at Sonora. Loss of 18.8m CAD including 8m impairment of the Magdalena Borate property.

Seeing Machines (LON:SEE) 4.37p £65.03m

The specialist in computer vision technologies which enable machines to see, understand and assist people is announced that it has worked with Emirates using its advanced gaze tracking technology to better understand how pilots interact and monitor instruments during certain identified real-time procedures that could pose potential safety risks. The findings from the study will be presented at the 70th annual International Safety Summit (IASS) in Dublin this week, and will enable Emirates to enhance training for flight deck crew to prepare for a wide range of scenarios in the air. For Seeing Machines, working with Emirates has meant access to insights from Emirates' pilots and their extensive knowledge operating a modern 263- strong fleet of Airbus A380 and Boeing 777 aircraft across a global network of over 155 destinations in six continents. The partnership with Emirates will also help the Company leverage findings in applications across the other industries. FYJun18E rev £27.75m and £14m pre-tax loss.

Petro Matad (LON:MATD) 6.62p £22.08m

Mr. Michael Buck has today been appointed as Chief Executive Officer of Petro Matad Limited. He will be appointed to the Board as soon as AIM regulatory processes have been completed. He has 38 years of experience in the international oil and gas industry. He joined Salamander Energy PLC in August 2006, was appointed to the Board as an Executive Director in October 2006 and was Salamander's Chief Operating Officer until March 2015 when Salamander was acquired by Ophir Energy Plc. He was retained by Ophir to help with the integration of the two businesses. Following his departure from Ophir, he established a new upstream E&P entity focused on S E Asia.

Zinc Media (LON:ZIN) 0.95p £5.89m

The TV and multimedia content producer, announced the acquisition of Tern Television Productions Limited, for a total consideration of up to £5.45m and an oversubscribed placing of 389,603,280 new Ordinary Shares in the Company at a price of 0.9 pence per share (17% discount to yesterdays close)  to raise £3.5m  gross. Tern is a profitable independent TV production company. In the financial year ended 31 March 2017, Tern's turnover was approximately £5.3m with profit before tax of approximately £0.3m. "By augmenting our business through acquisitions such as that of Tern, the enlarged group will have greater abilities to reach new markets, to establish strategic relationships with broadcasters and international commissioners and to produce innovative content. FYJun18E rev £27.45m and £0.69m PBT.

Victoria Oil & Gas (LON:VOG) 58.5p £64.68m

‘’The integrated natural gas producing utility in Cameroon, has been made aware of very recent market speculation regarding the Company undertaking a potential fundraise’. The Company is seeking to raise between $20m to $26m by way of the Placing and Subscription through the issue of new Ordinary Shares at a minimum price of 57p by accelerated bookbuild, plus $3m open offer. The Directors intend to participate in the Fundraise by way of the Subscription. Use of proceeds includes: •   Target the c1,700MW power deficiency in Douala with gas to power solutions

•     Deliver 100mmscf/d by the end of 2021

•  Increase Logbaba gas processing plant capacity to 70mmscf/d

•     Extend pipeline reach around port city of Douala to Bomono, the Eastern Corridor and other specific customers.

EVR Holdings (LON:EVRH) 7.87p £81.3m

Proposed placing to raise £10m for the Company and £5m for selling shareholders at 8p. Following the sale Anthony Matchett and Steven Hancock will still retain over 80 per cent. of their original shareholdings, equating to 184,107,796 and 146,509,136 Ordinary shares in the Company respectively and are subject to a six month lock-up in respect of 50% of those shares and a 12 month lock-up in relation to the remaining 50%, with certain customary exemptions. The Placing is intended to enable MelodyVR to make further investments in its original content library as well as to extend the capacity of its live music capture and digital content creation capabilities both in the UK and overseas. We could see no forecasts.

Hummingbird Resources (LON:HUM) 37.25p £128.14m

Aggreko PLC  has fully commissioned the 7.4 MW diesel power facility on site to provide power to the process plant at the Company's Yanfolila Gold Mine in Mali. "Working with Aggreko to deliver our power remains in line with our strategy of working with world class partners as we progress Yanfolila towards imminent gold production. Aggreko offers the best quality power solution in the market at competitive pricing with a full team on site to run and maintain its operations.  Furthermore , we continue to evaluate potential renewable solutions such as solar PV, as we strive to be a responsible miner operating for the benefit of all our stakeholders. We expect the next upcoming milestone to be the commissioning of the water supply and testing the now fully installed mill."


Redde (LON:REDD) 162.5p £493.9m

AGM statement  from the provider of  a range of accident management, incident management and legal services.

“The positive start to the new financial year, which I described in my statement of 6 September 2017, has continued since that date. Sales show an increase over the corresponding period last year reflecting continued growth in trading volumes and, as a consequence, trading profits are ahead of the corresponding period last year. Early indications are that this trend has continued during October and the Board remains confident about the Group’s prospects for the financial year as a whole. “ FYJun18E rev £492m and PBT £42.8m. PE c.15x and yield c.6.8%.

Nexus Infrastructure (LON:NEXS) 191.5p £73m

Trading update for FYSep17 from the provider of essential infrastructure services to the UK housebuilding and commercial sectors.

“The Board expects the results for the Group for the year ended 30 September 2017 to be in line with its expectations. The Board is encouraged by the level of growth in the Group's order book, which ended the year at £202.7m, a 25% year-on-year increase. This provides Nexus with good visibility for the year ahead.”

FYSep17E rev £134.7m and PBT £8.9m. PE c.11x and yield c.3%


Head Chef:

Derren Nathan

0203 764 2344

[email protected]

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