ATQT New Contract Win, BOOM Agreement, AVN Contract Win, CNIC Agreement, COS Final Results and Partnership, GOAL Trading Statement, IVO Funding Found, MIRA Final Results, MXO Investment and Placing, NRR Acquisition, OPTI Contract Signed, PNA Market update, RSTR Partnership, STAF Trading Update
*A corporate client of Hybridan LLP
A full archive of previous weeks’ Small Cap Wraps can now be viewed on www.hybridan.com.
The Hybridan Small Cap Wrap is a weekly review of some of the most interesting small cap stories of the past week. Our review will usually be of those companies whose market capitalisations are less than £50m although we may occasionally cover larger companies.
ATTRAQT Group (LON:ATQT)
ATTRAQT Group, a leading provider of eCommerce visual merchandising, site search and recommendation technology, announced that it has been appointed by Bfashion, an Eastern European online fashion retailer, to deliver ATTRAQT's full suite of products across eight international sites. ATTRAQT's Freestyle Merchandising platform will enhance Bfashion's visual merchandising, site search, navigation, and product recommendation capabilities, upgrading its current ecommerce platform across Bulgaria, Romania, Hungary, Slovakia, Slovenia, Czech Republic, Croatia and Greece in line with local visual merchandising rules. As part of this adoption of the Company's suite of products, Bfashion has opted to use the ATTRAQTMail service, launched in Q4 2014. This will allow Bfashion to merchandise to customers through its current email marketing system, and to benefit from ATTRAQT's professional services department for a full site review and follow-up workshops.
Audioboom, the leading spoken-word audio on-demand mobile platform, announced an agreement with Cumulus Media Holdings, the second largest radio group in the USA, to use its fully featured SaaS platform to provide on-demand creative, hosting, broadcasting and advertising tools for the entire Cumulus radio network, encompassing over 450 stations, over 100 nationally syndicated shows and over 240m unique listeners. The Audioboom platform will be used by Cumulus to embed content across its networks' websites and mobile apps, offering listen-again, on-demand and bespoke podcasts and to create clips that can be distributed via Audioboom's embeddable players, social media integration (Twitter and Facebook), and RSS feeds into third party audio platforms.
Importantly, the platform will allow Cumulus, as exclusive sales representation agent, to monetise this digital content through the sale of pre- and post-roll video, audio and display advertising, as well as the significant growth of 'in-read' native advertising for podcasts. Under the agreement Audioboom will receive a share of all advertising revenues generated using its platform. In addition, Audioboom and Cumulus will collaborate to commission and produce original audio content to be distributed through new podcast networks covering news, sports and country music. This content will allow revenues to be generated from additional 'in-read' or 'mid-roll' advertising, to run alongside pre- and post-roll ads.
Avanti Communications (LON:AVN)
Avanti Communications, a leading provider of satellite data communications services in Europe, the Middle East and Africa, has signed a new contract with South Africa's business chamber, Foundation for African Business and Consumer Services (FABCOS) and its new major business incubator programme, Microtelco e-ncubator. Delivered via funding from South Africa's Department of Trade and Industry, the partnership will provide high speed satellite broadband to over 1,000 small and medium sized enterprises. The programme will be deployed extensively to businesses setting up in some of the remotest parts of South Africa, reaching a number of key sectors including retail, finance and agriculture. Delivery of resilient broadband connectivity underpins the RSA government's business growth strategy. Research demonstrates that SMEs are the building blocks of an economy: 91 percent of the entities in South Africa are SMEs, of which 52-57 percent contributes to the country's GDP. FABCOS's Microtelco e-ncubator programme specifically nurtures small telecommunications companies, for which connectivity is a vital part of day to day operations.
CentralNic Group (LON:CNIC)
CentralNic, the internet platform business which derives revenues from the global sale of domain names, announced that it has entered into a premium domain name sales agreement under which it will receive consideration of $1m. CentralNic launched a business trading in Premium Domains (domain names that trade at a premium to normal retail pricing) in the second half of 2014, and has since acquired around 4,000 domain names (in addition to its existing inventories) and has sold domains at prices ranging from $3,000 to hundreds of thousands of dollars. Under the premium domain sales agreement entered into on 30 June 2015, CentralNic will receive $1m consideration in cash, which is payable over the coming months, the proceeds of which will be utilised to further accelerate growth within the Group, including acquiring additional premium domains to augment the existing portfolio.
Collagen Solutions, the developer and manufacturer of medical grade collagen components for use in regenerative medicine, medical devices and in-vitro diagnostics, announced its final results for the year ended 31 March 2015. Net funds of £5.4m were raised in an over-subscribed equity placing in December 2014. There was the strategic acquisition of Southern Lights Ventures 2002 (Southern Lights Biomaterials or SLB) based in New Zealand. Revenue and other income increased to £1.04m (2014: £0.02m). Adjusted LBITDA (before separately identifiable items) was: £0.69m (2014: £0.39m). Net cash balances on the 31 March 2015 were £3.4m (2014: £1.49m). Operational highlights showed customer announcements of biomaterials supplied to Globus Medical Inc, Desu Medical, Kyeron Medical Innovations and Novabone Products LLC.
The statement mentioned the smooth integration of management teams in Glasgow, San Jose and New Zealand. The PLC management team was strengthened by the appointment of Geoff Bennett as Chief Business Officer and the appointment of Prof. Robert Brown, UCL, as exclusive consultant and member of Scientific Advisory Board. The company also announced that it is part of a consortium that has been awarded an Arthritis Research UK (ARUK) Point of Care grant to develop novel functionally man-made osteochondral scaffold for large osteochondral defect repairs. Osteochondral injury refers to repetitive trauma within a joint such as the knee or elbow. Collagen will collaborate with UCL and Oxford MEStar, a rapidly growing company specialising in translational and regenerative medicine. Successful delivery of this programme will lead to the development of a novel scaffold that can be used clinically in a one-step surgical procedure for treatment of large osteochondral defects.
Goals Soccer Centres (LON:GOAL)
Goals Soccer Centres, the UK's premier operator of next generation outdoor 5-a-side soccer centres with 46 centres in the UK and one in Los Angeles, USA, announced a trading update for the six months ended 30 June 2015, in advance of the release of the company's interim results on 9 September 2015. Group sales for the period were in-line with last year at £17.1m (2014:£17.1m), with Group like-for-like sales down by 1 percent. UK like-for-like sales declined by 2 percent as a result of adverse weather conditions in the first quarter as compared to last year and some softness in the casual market. Trading strengthened during Q2, although not sufficiently to fully recover the Q1 shortfall. The US business continues to perform strongly with like-for-like sales increasing by 20 percent as the centre's popularity increases, reinforcing confidence in the planned US roll-out. The US site pipeline is developing, with legals concluded, planning consent achieved and building permits at an advanced stage on one site with construction due to commence in the second half of the year. Heads of terms are agreed and legals commenced on a further three sites. Following the recent appointment of a US Development Director the company expects progress to gather further momentum. During the period the Group opened new centres in Manchester and Doncaster and construction is due to commence on an additional UK centre in the second half of the year. Take-up of the new mobile app continues to build, with total downloads in excess of 30,000, still increasing on a weekly basis.
Imperial Innovations Group (LON:IVO)
Imperial Innovations Group has led a £4.0m funding round in Impression Technologies, an aluminium forming technology business based on intellectual property developed at Imperial College London. Innovations invested £0.5m in seed funding in Impression Technologies in February 2013 and has now committed a further £2.5m in this round alongside Mercia Technologies, an existing investor. Following this new investment, Innovations will hold a 59.9 percent stake in the issued share capital of the Company. The Group does not control Impression Technologies and does not consolidate it. Impression Technologies specialises in developing technology for forming complex, high-strength, lightweight components for the transportation industry. The Company's patented solution Heat treatment, Forming and in die Quenching technology developed by Impression Technologies and Imperial College, allows a wide range of aluminium alloys, including ultra-high strength grades, to be formed in a fast pressing operation without compromising the strength or metallurgical properties of the material. The result is complex but lightweight components, which can be used in the manufacture of cars, trains and aeroplanes. The funds will be used to acquire a press and establish a press facility in collaboration with Impression Technologies' first licensee, PAB Coventry, in order to continue development of the technology, and to keep up with customer demand. PAB is currently supplying parts, to the motor industry.
mirada (LON:MIRA)
mirada, the AIM quoted leading audiovisual content interaction specialist, announced its final results for the year ended 31 March 2015. Revenue increased 24 percent to £5.66m (2014: £4.57m), leading to gross profit increasing 23 percent to £5.42m (2014: £4.39m) with gross profit margin remaining stable at 96 percent. Adjusted EBITDA increased 50 percent to £1.54m (2014: £1.02m) with pre-tax loss reduced to £0.11m (2014: loss of £0.39m). Operational highlights showed the commercialisation of first Tier One project for Televisa Group with Cablevisión Monterrey deployment commencing in February 2015, the company also had an oversubscribed placing to raise £3.5m at a price of 12.5p, providing funds to strengthen the Group’s position within the Over The Top market and Latin America. The company also announced the appointment of José Gozalbo (Chief Technology Officer) as Executive Director, Matthew Earl as Non-Executive Director, and Gonzalo Babío as Chief Financial Officer (non Board appointment).
MX Oil, the AIM quoted oil and gas investment company, announced it has agreed to invest in an indirect, non-operated, 5 percent revenue interest in the OML 113 licence, offshore Nigeria, which includes the Aje Field, a substantial development stage project with proven, flow tested discoveries where production is expected by January 2016. This investment is in line with the Company's strategy to acquire high impact near term production assets in proven oil and gas jurisdictions to build a cash generative platform. In addition, the Company announced the issue of 133,333,333 new ordinary shares via a placing at 4.5p per share to raise £6m before expenses to provide additional working capital and funding for future capital expenditure and investment.
NewRiver Retail, the UK REIT specialising in value-creating retail property investment and active asset management, announced that it has exchanged contracts to acquire the Ramsay Retail Warehouse Portfolio for a total consideration of £69.1m, equating to a net initial yield of 8 percent on the income producing assets. The Portfolio is to be acquired from a major foodstore operator utilising a portion of the funds to be raised following completion of the Company's proposed conditional placing of 50,000,000 new ordinary shares which is intended to raise gross proceeds of approximately £150m, as announced on 19 June 2015. The acquisition is in line with the Company's proven business model of acquiring carefully selected retail assets that will generate attractive cash on equity returns with identifiable opportunities to unlock additional value through the Company's active asset management and risk-controlled development.
Optibiotix Health, a life sciences business developing compounds to tackle obesity, high cholesterol and diabetes announced that it has signed an agreement with the Instituto de Química Orgánica General of the Spanish National Research Council (Consejo Superior de Investigaciones Científicas, CSIC) based in Madrid. The IQOG is an international renowned centre in the synthesis, analysis, and the study of the biological behaviour of organic compounds in humans. This agreement will enable OptiBiotix to progress its pipeline of novel oligosaccharides (carbohydrates that consists of a small number of sugars) identified by its OptBiotic® technology platform to testing in human studies. The oligosaccharides have been selected on the basis of the novelty, levels of production, and their potential to manipulate the human microbiome. This supports the focus on OptiBiotix's target market areas in metabolic health, including applications in managing high cholesterol, obesity, and diabetes. The work on scale up, purification, and testing will include strains from international commercial partners subject to finalisation of commercial terms.
Penna Consulting, the international human resources consulting group, announced the extension of its product offering. On 30 June 2015, the Company completed the acquisition of Career Café, trading as 360 Degrees Advertising and 360 Education, market leaders in the area of recruitment in the higher education and student marketing sectors. These sectors are areas where the Penna management sees good growth potential and the acquisition will broaden the reach and depth of offering in the Company's Recruitment division. In addition, Penna has entered into an agreement with the Chartered Institute of Public Finance and Accountancy (CIPFA) pursuant to which it will take over CIPFA's recruitment business that places finance professionals into the public sector. The Company has also entered into a marketing arrangement with CIPFA under which the Company and CIPFA will combine their expertise and relationships to provide finance professionals for organisations in the public sector.
Rightster Group, the digital video distribution and monetisation network, announced a partnership with Universal Pictures International, to promote the Minions film across multiple territories in Asia Pacific, South America and Europe. To build excitement and anticipation around the Minion's film release, Universal Pictures International and Rightster are using audience data to select popular Instagram, Snapchat and Vine influencers across multiple territories. The influencers are being asked to showcase their creativity by developing and uploading unique Minions themed content, timed to coincide with the film's release in their respective countries. This content is creating engagement around the Minions film on a global level and will be amplified organically across the influencers' own social networks. This activity follows on from the successful YouTube influencer campaign Universal Pictures International activated through Rightster earlier this month, where Rightster worked with YouTube creators across the UK, France, Spain, Italy and Germany, including ThatcherJoe (4.8m subscribers) and EnjoyPhoenix (1.6m subscribers) to promote the Minions film. The creators were sent a mystery package including an invitation to attend an exclusive, one off fashion event, where London fashion students were tasked with creating garments to celebrate the uniqueness of the Minions. The creators made videos around the event which they then promoted across their social platforms, including Facebook and Twitter.
Staffline, the Staffing and Employability organisation, providing people and operational expertise to industry, provided an update on trading for the six months ended 30 June 2015. As indicated at the time of the AGM on 21 May 2015, trading has been strong during the first half of the year and in line with market expectations. The Staffing business has continued to perform well, following its record start to the year, with growth underpinned by both existing clients and an excellent new business pipeline. The PeoplePlus division, known as Avanta prior to the acquisition of A4e in April 2015, is making good progress in the nine Work Programme regions where it is now prime contractor. The integration of A4e is on track and the Board remains confident that the acquisition will support the Group's continued growth ambitions.