Proactive Investors - Run By Investors For Investors

Breakfast News - Elecosoft, SDX Energy, Boku and more...

Breakfast News -  Elecosoft, SDX Energy, Boku and more...

What’s cooking in the IPO kitchen?


Hydrominer GmbH, An Austrian cryptocurrency miner, is considering an initial public offering (IPO) on the London Stock Exchange AIM during 2018 according to an article on Bloomberg.

Block Energy—a  NEX Listed UK based oil exploration and production company whose main country of operation is the Republic of Georgia, looks to join AIM end of February 2018. Offer TBC

Cradle Arc—holding company of a group of companies focused on the exploration and development of precious and base metals projects in Africa. Offer raising £2.4m with market cap of £20.13m. Expected 24 Jan 2018

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.

Main Market Premium Listing

IntegraFin provides platform services to UK clients and their financial advisers through its award-winning platform, Transact. Due Mar 18. FYSep2017 PBT up 44% to £29.9m.

GEMS Education—report by Reuters that the private schools group is seeking a $4.5bn to $5bn London float in 2018. FYAug17 rev $926.2m and adjusted EBITDA $261.6m.

Vivo Energy—The Africa-focused company, which operates around 1,800 Shell forecourts across 16 countries  reported by City A.M. to be preparing for a London float next year.

Breakfast buffet

Base Resources (LON:BSE) 15.5p £173m

“The Toliara Sands Project acquisition has now completed.

With payment of the $75m up-front consideration by Base Resources, the initial 85% interest in the wholly owned Mauritian subsidiaries of World Titane Holdings Ltd, which between them hold a 100% interest in the Toliara Sands Project in Madagascar (held through wholly owned subsidiaries in Madagascar), and control, has now been transferred to the Company.  Base Resources will acquire the remaining 15% interest, with a further $17m payable on achievement of key milestones as the project advances to mine development.”

Concurrent Technology (LON:CNC) 75.5p £54.9m

“The specialist in the design and manufacture of high-end embedded computer boards for critical applications, announced a range of products to help customers improve the security of their solutions.

The Company now offers a factory fitted, latest version Trusted Platform Module (TPM) 2.0 as an alternative build option to the original TPM 1.2 device for all customers using operating systems based on Windows® 10 or recent versions of Linux®. The TPM 2.0 will be available on all new boards and across a wide range of existing boards.

Concurrent Technologies Plc is also now marketing specific security capabilities as separate utilities.  Initial examples include Unified Extensible Firmware Interface based Secure Boot and Sanitization capabilities that are compliant to the US Defense Security Service standards.” We could see no forecasts.


Elecosoft (LON:ELCO) 46.9p £36.3m

FYDec17 trading update from the construction software specialist. Both revenue and PBT expected to be significantly higher compared with Revenue and Profit before Tax for the year ended 31 Dec 2016 and in line with market expectations. Elecosoft's strong conversion of operating profits into cash in the year enabled the Group to eliminate its net borrowing position at 30 Jun 2017 and to also improve its net cash position further in H2. “Elecosoft's strong trading performance in 2017 was driven by the success of its sales strategy of securing new direct customers, backed up by providing strong customer training and support reflected in continued high renewal rates, and continued growth in our software reseller programme. The 2017 trading performance also benefited from the successful integration of the ICON business, which had been acquired in October 2016; and favourable exchange rate movements. The decision to unify all  software products brands under the Elecosoft® brand during the year was also well received. FYDec17E rev £20.6m and PBT £2.2m. Div 0.5p.


SDX Energy (SDX.L) 50.9p £104.1m

The North Africa focused oil and gas company,  announced that a gas discovery has been made at its ONZ-7 development well on the Sebou permit in Morocco.

The ONZ-7 well was drilled to a total depth of 1,167 meters with 5 meters of net conventional natural gas pay in the Hoot formation. The well came in on prognosis but reservoir quality exceeded initial expectations, encountering porosity in the pay section of 35.3%.

The well will now be completed, tested and connected to existing infrastructure.  SDX expects to provide a further update on testing results in early February. 


Boku  (LON:BOKU) 85p £181.5m

The “direct carrier billing company, provided the following unaudited trading update for the year ended 31 Dec 2017. This is the Company's first Trading Update since Admission to AIM in November 2017.

The Group saw continued growth in all key metrics during 2017:

* Revenue for FY 2017 is expected to be in the range $24-24.5m, an increase of approximately 40% over 2016 ($17.2m)

* Adjusted EBITDA is expected to be positive for H2 2017, a major milestone for the company

* Total Processed Value (TPV) of $1.7bn for 2017 was more than triple the 2016 amount of $554m thanks to continued growth across all customer segments - most notably App Stores and Digital Music Subscriptions & Bundling.

We could see no forecasts.


Gamma Communications (LON:GAMA) 682p £633m

FYDec17 update from technology based provider of communications services to the UK business market.

“We are pleased to report that Adjusted EBITDA* for the year ended 31 Dec 2017 is anticipated to be slightly ahead of market expectations. This reflects a strong demand in the business market for Gamma's portfolio of products.”

The closing net cash balance for the year was £31.6m compared to £28.2m at the end of the previous year, an increase of £3.4m in the year. This was achieved despite a significant capex programme for the year which included c£13m spent on the network (of which c£5m was spent on the new national network).

FYDec17E rev £233.47m and £26.1m PBT.

Castleton Technology (CTP.L) 68.5p £53.9m

“The software and managed services provider to the public and not-for-profit sectors, announced that it has secured two multi-year contracts, with a combined total contract value of £1.2m.

The first is a ten year contract with Circle VHA, Ireland, a provider of social housing. The contract is on a hosted basis for Castleton's integrated product suite, including the housing and finance system, electronic data records management system, financial modelling system, reporting system and Agile system.

The second contract is a renewal for Places for People, one of the largest property and leisure management, development and regeneration companies in the UK, which has more than 180,000 properties under ownership or management.” FYMar18E rev £23.12m and PBT £4.22m.


Eagle Eye (LON:EYE) 227.5p £57.82m

HYDec17 ‘in-line’ trading update from the SaaS technology company that allows businesses to create a real-time connection with their customers.

* Group revenue increased by c.28% to £6.5m (H1 2017: £5.1m)

* Loblaw to launch largest digital loyalty programme in Canada on 1 Feb 2018 enabled by the Eagle Eye AIR platform

* Redemption volumes of 82.8m, an increase of 228% year on year (H1 2017: 25.2m)

* SMS volumes of 28.6m, an increase of 50% (H1 2017: 19.0m)

* Revenue from subscription fees and transactions over the network represented 75% of total revenue in H1 2018 (H1 2017: 66%)

* Cash position of £0.8m (June 2017: Cash of £3.7m)

FYJunE rev £15.9m and Pre-tax loss £3.6m.

Join Proactive’s Crypto, Blockchain and Cannabis Telegram group here

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