BOOM Half Yearly Report, COG New Research, CRU Preliminary Results, FEVR Interim Results, HCM Innovation Patent, IVO Investments, JRIC Half Yearly Report, MJW Launch of Naked Wines, MARL* Resource Estimation, MXO* Drilling Commences and Director Dealing, NAK Final Results, PEG* Trading Update, SAR* CHK1 Update, SDI Final Results, SVR Trading Statement, STAF Interim Results, SNX Interim Results
*A corporate client of Hybridan LLP
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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.
Audioboom, the leading spoken-word audio on-demand mobile platform, announced its unaudited interim financial results for the six months ended 31 May 2015, another period of continued growth in its active userbase and content partners. KPIs & financial highlights showed that over 4m registered users (Nov 2014:3.14m), with over 3,000 active content partners (Nov 2014: over 2,000) and 1.5m total mobile app installs since launch. Revenue was up to £46k (5 months ended 31 May 2014:£24k) and cash at period end of £6.19m (as at 31 May 2014:£3.06m). Operational highlights showed a successful marketing campaign and content deal with Russell Brand, an in-vehicle deal with AUPEO! and app integration with Apple CarPlay and Android Auto and a Nobex Radio partnership agreement.
Cambridge Cognition Holdings (LON:COG)
Cambridge Cognition Holdings, which specialises in computerised neuropsychological tests including those enabling the early detection of dementia, welcomes a number of new scientific posters presented this week at the Alzheimer's Association International Conference in Washington, D.C. Collectively the scientific posters highlight the sensitivity and effectiveness of the Company's latest healthcare technology innovations and clinical trial assessment systems including the new Cantab Connect Prodromal Alzheimer's product. This cloud-based clinical trials product aids the development of effective treatments and interventions for prodromal Alzheimer's, the earliest stage of dementia. The Company presented the latest data from global studies using iPad-based Cantab technology for cognitive testing in clinical trials. One study illustrates the use of Cantab to detect and measure amnestic mild cognitive impairment, a slight but noticeable decline in cognitive abilities, including memory. The initial clinical diagnosis of MCI can be unstable, with the degree of cognitive impairment rapidly worsening in some people. This research used Cantab technology to predict stable versus transient MCI in patients over a short period of time to demonstrate the sensitivity and specificity of the tests to this early stage of the disease.
Coral Products, UK specialists in the design, manufacture and supply of injection moulded products, announced its preliminary results for the year ended 30th April 2015. Progress has been seen for a consecutive year with group revenue at £17.43m (up by 1.2 percent from 2014) and underlying profit at £1.16m (up by 130.2 percent from 2014). An increase has also been seen in underlying basic earnings per share to 2.12p (75 percent growth in the year). The market for plastic food containers continues to grow in the UK with sales rising to £7m in 2015, up from £6.1m in 2014. This has encouraged Coral Products to increase their range of food packaging products. Better valued products have been given to Coral Products after the successful integration with Tatra Plastics Manufacturing Limited in July 2014. This means Coral Products are able to offer the wider range of products that are needed due to the sales increase of plastic food containers. Recycling product sales fell from £1.8m in 2014 to £1.2m in 2015. This was below the company’s expectations. Therefore, waste management continues to be to an area of future spending for Coral Products.
Fever-Tree, the world's leading supplier of premium carbonated mixers for alcoholic spirits by retail sales value, announced its Interim Results for the period ended 30 June 2015. Financial highlights showed revenue was up 62 percent to £24.1m (H1 2014: £14.9m), with gross margin of 50.5 percent (H1 2014: 51.1 percent). Adjusted EBITDA was up 68 percent to £7.2m (H1 2014: £4.3m) with a strong balance sheet with net cash at period end of £7.9m. Operational highlights showed a new UK Off-Trade listing in Morrisons, continued strong growth in Ginger Beer sales in USA and the launch of the new 150ml can format.
Hutchinson China MediTech (LON:HCM)
Hutchison China MediTech announced that Shanghai Hutchison Pharmaceuticals Limited (SHPL), its prescription drug joint venture, has been granted an invention patent in China covering the formulation for the best selling prescription drug of Chi-Med for the treatment of cardiovascular diseases, She Xiang Bao Xin pill (SXBXP), until 2029, twenty years from its original filing date. SXBXP is the most important prescription drug product of SHPL with sales in 2014 of $138.8m (2013: $123.6m). SXBXP represents 90 percent of current SHPL sales and has grown at a compound annual average growth rate of 29 percent per year since 2007. It underpins the commercial operation of SHPL of over 1,700 medical representatives and marketing staff who manage the distribution and sales of SXBXP in approximately 13,500 hospitals, covering over 80,000 physicians, in China. SXBXP was first approved for use in cardiovascular diseases in 1983 and subsequently enjoyed 22 years of proprietary commercial protection under the then regulatory system in China. In 2005, SHPL was able to attain "Confidential State Secret Technology" status protection on SXBXP, as certified by China's Ministry of Science and Technology and State Secrecy Bureau which extended proprietary protection of SXBXP until late 2016.
Imperial Innovations Group (LON:IVO)
Imperial Innovations Group, has completed a £3m investment in Concirrus Ltd a leading Internet of Things (IoT) solution provider based in London. Imperial Innovations now holds a 28.6 percent stake in the Company. Concirrus was founded in 2012 by Andrew Yeoman (CEO) and Craig Hollingworth (Corporate Development) who came directly out of the telematics and communications industries. Andrew (formerly with Trimble Navigation) and Craig (formerly with Orange, O2 and Masternaut), identified an opportunity to launch a company providing fully integrated business solutions built on a scalable cloud-based platform. This platform enables customers to gather and analyse IoT data and use it to improve, disrupt and create innovative businesses and processes. Last year the Company provided connected solutions in a range of business applications, including asset monitoring, predictive maintenance, fleet management and vehicle insurance, whilst at the same time winning awards from Gartner, Nexus, Scale-Up London and TechMarketView. Concirrus was also featured by both the Sunday Times and the Daily Telegraph for its contribution to the IoT. The £3m investment into Concirrus complements Innovations' growing ICT portfolio. The funding will allow Concirrus to build out its suite of products for the vehicle insurance market and fund expansion of the sales team to capitalise on existing channel partnerships. The company also announce that it has completed a £1m seed investment in Inflowmatix, a water network data analytics company recently spun out from Imperial College London. Innovations now holds a 42.5 percent stake in the company. Inflowmatix provides water flow and pipe health analytics to water utilities worldwide, enabling network operators to continuously monitor, diagnose and manage hydraulic instabilities, leading to reduced bursts, leakage and operating costs, whilst also enabling prioritised network maintenance.
Japan Residential Investment Company (LON:JRIC)
Japan Residential Investment Company, a closed-ended company established to make and hold investments in residential property in Japan, presented its unaudited consolidated financial results for the six months ended 31 May 2015. Profit for the period increased 9.9 percent to £7m, reflecting value growth in the underlying assets. In Yen terms, profit for the period rose 17.5 percent. Unrealised valuation gains on investment property totalled £3.5m (2.9 percent of NAV) for the six months ended 31 May 2015. Portfolio value increased 1.4 percent in Yen terms over the six months ended 31 May 2015, compared with 1.8 percent over the comparative six month period. Investment property values rose 3.1 percent during the twelve months ended 31 May 2015 on a like-for-like basis. Underlying profit rose 2.4 percent on the back of higher revenues and lower administrative expenses. In Yen terms, underlying profit per share increased 9.5 percent.
Majestic Wine (LON:MJW)
Majestic Wine, the UK's largest wine specialist with 213 stores and the owner of Naked Wines, the online crowd funded wine retailer, announced that it has launched Naked Wines' Click & Collect service offering across the UK, enabling its 150,000 'Angel' customers the option of collecting their wine free of charge from their local Majestic store. Following the acquisition of Naked Wines in April 2015 and in line with the strategy to share the complementary strengths of both businesses, Majestic Wine has been trialling Click and Collect in 22 stores across the UK for Naked Wines' customers. To-date over 2,900 orders have been placed using the Click & Collect service. As a result of the success of this trial and positive feedback that has been received, the service will now be rolled out across the country to all 213 Majestic Wine stores. For no extra charge, Naked Wines' customers can now choose to collect their delivery from any of Majestic's stores, which will hold Naked Wines' customers wine for up to five days. Alternatively, customers can still opt for home delivery, and in either case can select their preferred delivery day.
Mariana Resources is reported further high grade gold-copper (Au-Cu) intercepts from the ongoing drill program at the Hot Maden Project, eastern Turkey. Assays have now been received for drill holes HTD-15 through HTD-17 confirming continuity and further increasing the size and confidence in the Au-Cu mineralised zone including the high grade core. HTD-15: 117.3m at 13.9 g/t Au + 2.0 percent Cu from 216.0m downhole including 22m at 46.2 g/t Au + 3.1 percent Cu (306.0m 328.0m). HTD-16: 100.7m at 2.3 g/t Au + 1.8 percent Cu from 332.3m downhole including 14.7m at 7.7 g/t Au + 2.0 percent Cu (333.3m - 348.0m).HTD-17: 83m at 13.4 g/t Au + 3.9 percent Cu from 51.3m downhole including 16.0m at 34.5 g/t Au + 2.2 percent Cu (98.0 - 114.0m). HTD-18: (Assays Pending) Hole HTD-18 was drilled as the "step back" to HTD-15 and intersected the main mineralised zone over 93m from 313m downhole. The significant Au-Cu intercept from hole HTD-15 confirms the vertical continuity of the mineralised zone previously intersected in HTD-10, and similarly, the results from drill hole HTD-16 extend the Au-Cu mineralisation previously intersected in holes HTD-5 and HTD-13 a further 50m down dip. Massive sulphide mineralisation was also intersected in HTD-17, the scissor hole to their original discovery hole HTD-04, and confirms a minimum true width of at least 50m for the main mineralised zone. Based on the overall excellent results at Hot Maden to date Mariana has independently engaged RungePincockMinarco (RPM), a global leader in mining advisory and consulting services, to commence work on the preparation of a National Instrument 43-101 compliant mineral resource estimate for the Hot Maden gold-copper project. RPM's will carry out an initial data validation phase and site visit, before progressing on to the mineral resource estimation phase. The mineral resource estimate for Hot Maden is expected to be completed by early Q4, 2015.
MX Oil, the oil and gas investment company, announced that drilling has commenced of the Aje 5 production well located in the proven Aje Field on the OML 113 licence offshore Nigeria. Once Aje 5 has been drilled and completed, which is expected to take approximately 70 days, the rig will proceed to re-enter and complete the Aje 4 well. These two wells represent the first of a three phase development programme of Aje. Phase 1 is targeting first oil in December 2015 and peak gross production of 41 API oil from these two wells is expected to reach 11,000 bopd, as stated in the June 2015 Competent Persons Report (CPR). The CPR also states that Phase 2 is targeting an increase in gross production to 19,000 bopd from an additional two well development. As announced on 13 July 2015, MX Oil has agreed to invest in a 5 percent revenue interest in OML 113 via Jacka Resources. The Scarabeo 3 semi-submersible rig was mobilised from its location near Lagos, Nigeria to conduct the drilling of the two wells, Aje 5 as a new production well followed by Aje 4 as a re-entry production well for Phase 1 of the development. Aje 5 is a twin to the legacy Aje 2 well which was production tested at the Cenomanian level in 1997, flowing approximately 3,700 bopd. Aje 5 is being drilled from a seabed location close to Aje 4 in 300 meters water depth. MX Oil also announced that on 27 July 2015 Andrew Frangos, Chairman of MX Oil, purchased 2,250,000 shares in the company totalling £87,750.
Nakama Group (LON:NAK)
Nakama Group, the recruitment consultancy working across the UK, Europe, Asia and Australia providing staff for the Web, Interactive, Digital Media sectors, IT and Business Change, announced its preliminary results for year ended 31 March 2015. Financial highlights showed that group revenue increased by 24 percent to £21.7m (2014:£17.5m), leading to a profit before tax of £0.29m (2014: loss £0.12m). Net fee income (NFI) improved by 22 percent to £5.3m (2014:£4.4m) and NFI percentage remained stable at 25 percent (2014:25 percent). Revenue across the APAC region increased by 18 percent to £6.3m (2014:£5.3m) driven by the continuing shortage of skilled talent within specialised markets - on a constant currency basis, the increase would have been 28 percent. Revenue across the UK region increased by 27 percent to £15.5m (2014:£12.2m) due to an increase in contractors on site and EBITDA increased to £0.55m (2014:£0.23m). Operational highlights showed a new London office with increased space for growth, the appointment of a regional direction for the Singapore office and a regional manager for the Sydney office. Sales consultants increased to 67 at year end, with the appointment of Group head of people and culture alongside the initiation of a global internal learning and development training programme, to better streamline and unify Nakama working procedures and HR requirements across the breadth of their offices and to the benefit their multi-cultural workforce.
Petards Group (LON:PEG)*
Petards, the developer of advanced security and surveillance systems, provided an update on trading following the end of its financial half year on 30 June 2015. The Group has continued to trade profitably in line with the Board's expectations for the six months ended 30 June 2015. Margins for the first half of the year will be significantly higher than those for the corresponding period in 2014 on lower revenues, reflecting the changed product mix which last year included a substantial amount of lower margin hardware deliveries to the MOD in respect of the RAF's SMRE project. Petards' interim results for the six months ended 30 June 2015 will be announced on 8 September 2015.
Sareum Holdings (LON:SAR)*
Sareum, the specialist cancer drug discovery and development business, is pleased to announce that the discovery and biological characterisation of the CHK1 inhibitor CCT245737 has been published in the peer-reviewed journal, Oncotarget. CCT245737 is the clinical development candidate discovered in the joint research collaboration between Sareum, The Institute of Cancer Research, London, and Cancer Research Technology. The intellectual property associated with the project was licensed to the CRT Pioneer Fund (CPF). CPF and Sareum are investing to take the project into Phase I clinical trial before commercialisation. The journal paper describes how oral delivery of CCT245737 boosts the effectiveness of conventional chemotherapies and could be used to treat lung and pancreatic cancers. Most chemotherapies work by damaging the DNA of rapidly dividing cells. But in response, cancer cells activate a molecule called CHK1 which delays cell division and gives cancer cells time to repair their damaged DNA. Scientists continue to believe that blocking CHK1 could stop cancer cells from repairing DNA damage and prevent them from becoming resistant to the cell-killing effects of chemotherapy. The research paper describes the techniques used to assess the method of action of CCT245737 in human cancer cell lines as well as its effect in in-vivo models, and demonstrated that it potently blocked CHK1. The drug is scheduled to begin first-in-human clinical trials in patients with lung and pancreatic cancers - two cancers with low survival rates that continue to resist currently available treatments.
Scientific Digital Imaging (LON:SDI)
Scientific Digital Imaging, the group that designs and manufactures digital technology products for use by the scientific community, through its Synoptics brands (Syngene, Synoptics Health, Synbiosis and Syncroscopy), the Artemis CCD brands (Atik Cameras and Artemis CCD Cameras) and the Opus Instruments brand (Osiris), announced its final audited results for the year ended 30 April 2015. Financial Highlights showed revenue remaining constant at £7m (2014:£7m), with increased gross margin at 59.2 percent (2014:57.1 percent) and a reduction in other administrative expenses to £3.7m (2014:£4.0m) leading to an operating profit of £59,000 (2014: £1,000). Operating profit for the year came in at £0.39m before costs of reorganisation, acquisition and fundraising costs and share based payments (2014:£57,000). Operational Highlights showed cost restructuring and change in commercial strategy for Synoptics continuing to take effect and a £0.5m new equity investment. Synoptics, Opus Instruments and Atik have shown increased sales revenue in H2 across all sales territories contributing to a growth in their turnover and profitability.
ServicePower Technologies (LON:SVR)
ServicePower Technologies, a market leader in mobile workforce management software, is pleased to provide an update on trading for the six month period ended 30 June 2015. Trading for the half-year is in line with management expectations and is also ahead of the same period last year. Total revenues for the six months to 30 June 2015 are expected to amount to £7m (of which 81.5 percent is recurring in nature), compared to £6.2m for the same period last year and £6.5m for the last six months of 2014. The Company expects to report a gross profit for the half-year of £3.4m (H1 2014: £2.7m), a LBITDA of £0.2m including £0.1m in extraordinary expenses and £0.2m in IT cloud transition costs (H1 2014 LBITDA: £0.7m) and a net loss of £0.6m (H1 2014: net loss £0.9m) including the accrued interest that was converted as of 30 June 2015, as announced on 30 June 2015. Cash at 30 June 2015 was £0.7m prior to the receipt of the £0.75m short term loan, as announced on 30 June 2015. For the second half of the year, the directors anticipate a return to profit, and given the Company's working capital cycle and the redemption and conversions of the convertible loan notes, this will be accompanied by a significant improvement in the cash position.
Staffline, the Staffing and Employability organisation, providing people and operational expertise to industry, announced its Interim Results for the six months ended 30 June 2015. Financial highlights showed revenues were up 42.9 percent to £297.2 m (H1 2014: £208.1m), leading to a gross profit up by 77.2 percent to £42.0m (H1 2014: £23.7m) and an underlying profit before tax up 56 percent to £10.1m (H1 2014: £6.4m). Interim dividend also increased by 50 percent to 7.5p (H1 2014: 5.0p). Operational highlights showed the acquisition of A4e Ltd in April 2015 for £34.5m significantly expanded Employability division, and a record first half within Staffing division with 32 new OnSites opened in H1, more than one a week with a total now at 267 sites (H1 2014: 212).
Synectics, a leader in the design, delivery and management of integrated security and surveillance systems for the world's most demanding security environments, reported its unaudited interim results for the six months ended 31 May 2015. Revenue was up to £32.6m (2014: £31.8m), leading to an underlying profit of £0.5m (2014: underlying loss £(2.5)m), but a loss before tax £(0.1)m (2014: £(2.6)m). Net debt at 31 May 2015 was £2.8m (30 November 2014: £6.1m; 31 May 2014: £5.1m) with the order book at £32.1m (30 November 2014: £28.6m; 31 May 2014: £32.9m).