What’s cooking in the IPO kitchen?
AIM
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 late Jan 2018
Volex (LON:VLX)—The global provider of cable assemblies is proposing to move from the main market to AIM on 19 January. £75m market cap. FYMar18E rev £241.5m and £7.19m PBT.
OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m.
Main Market Premium Listing
Press speculation that iconic luxury car builder of James Bond fame, Aston Martin is considering a London IPO with a valuation of up to £5bn
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) 15.75p £172.8m
Quarterly activities report.
Record revenue per tonne sold of $323, producing a revenue to cost ratio of 2.9.
Significant zircon price increases achieved, and further price increase locked in for contracted March quarter sales.
Net debt further reduced by $21.0m to $65.6m.
Increase in FY2018 production guidance for ilmenite & zircon.
No lost time injuries.
Agreement reached for acquisition of the world-class Toliara Sands Project in Madagascar.
$100m capital raise to fund the initial $75m purchase consideration for the Toliara Sands Project.
Corporate revolving credit facility established to provide funding for progression of the Toliara Sands Project pre development activities.
Cora Gold (LON:CORA) 15.05p £8.27m
“The West African focused gold exploration company, is pleased to announce that, following the mobilisation of the drill rig on 30 November 2017, it has completed the Stage 1 reconnaissance drill programme at its flagship Sanankoro Gold Discovery in Southern Mali and is awaiting assay results.”
Visible gold observed in many holes indicating widespread mineralisation along the structures
· Assay results expected prior to the end of January 2018 29 holes and nearly 2800m of drilling.
EKF Diagnostics (EKF.L) 26.25p £120.1m
Trading update from the point-of-care business.
“The Company is pleased to announce that revenues for the year ended 31 December 2017 are in line with expectations whilst adjusted EBITDA is expected to comfortably exceed expectations. Net cash at the year end is £6.8m.
The Company also announces that it intends to spin-out its sTNFR biomarker technology into a separate entity to enable it to exploit opportunities to realise value from this technology, which having been fully impaired and has a current carrying value of nil. ”
FYDec17E rev £41.56m and PBT £4.16M.
Surgical Innovations (SUN.L) 4.15p £32.47m
FYDec17 update from the designer and manufacturer of innovative technology for minimally invasive surgery.
“Group revenue for the year exceeded £8.7m, representing growth of approximately 44% over 2016. Within this, organic growth in the existing business was approximately 10%. The integration of Elemental Healthcare Limited, acquired in August 2017, continues in line with plan and following the acquisition, the reaction of both distributors and suppliers to both businesses has been very positive.
The combined gross margins were within target range and the increasing levels of profitability are in line with board and market expectations.” Consensus EPS 0.19p.
Aukett Swanke (LON:AUK) 2.5p £4.13m
FYSep17 results from the international group of architects and interior designers. Revenue down 11.7% at £18.40m. Loss before tax of £325k (2016: £927k profit) H2 profit. Net funds of £184k (2016: £790k). “With such a varied set of results we have to be thoughtful about the outlook for 2018. However, we believe that we have turned the corner in the Middle East and this operation should generate a reasonable return in both profit and cash terms thereby justifying the investment that we have made. Continental Europe has now reached the bottom of the current cycle in Russia and Turkey and the overall result for this hub in 2018 should be positive as we expect Berlin to be profitable and Frankfurt to continue its current performance levels. The only operation lacking significant clarity is the UK.” Not expecting profitability for FY 2018.
Footasylum (LON:FOOT) 257.5p £269m
18 week to December trading update from the UK-based fashion retailer focusing on the branded footwear and apparel markets.
“Footasylum has continued the strong growth experienced over the first half of its current financial year, with total revenues for the Period of £89.8m, an increase of 33.4% compared to the corresponding period in the prior year.
All three sales channels (i.e. stores, eCommerce and wholesale) experienced year on year revenue growth in the Period, with eCommerce accounting for a higher proportion of total revenue than in the comparable period in the prior year.”
We could see no forecasts.
Rockhopper Exploration (LON:RKH) 25.09p £117m
Corporate update. Sea Lion Phase 1, North Falkland Basin (RKH 40% working interest). The project continues to move towards sanction at the end of this year, with work during the second half of 2017 focusing on progressing the commercial, fiscal and financing elements required to secure the $1.5bn of capex required to achieve first oil. Abu Sennan, Egypt (RKH 22% working interest) production stable at 3800 boepd. Good inventory of prospects and leads.
Rockhopper's year-end 2017 cash balance was $51m. Hopeful of positive outcome and cash in flow from Ombrina Mare arbitration.
APC Technology (LON:APC. 7p £9.4m
The provider of design-in, specification and distribution services for specialist electronic components and systems, lighting technologies and connectivity products, has completed the acquisition of First Byte Micro Ltd ("FBM") a franchised and independent distributor of electronic components. For the 12-month period ended 31 December 2016, FBM recorded revenues of £1,300,678, a profit before taxation of £193,541 and had net assets of £686,610. In 2017, FBM is expected to have seen revenue and profit growth. The consideration payable will be c£1.2m of which £0.7m represents cash at completion in FBM. “The acquired business will add to the existing business which has started fiscal year 2018 well and trades in line with expectations." FYAug18E rev £16.5m and £0.52m PBT.
Marshall Motors (LON:MMH) 160p £123.8m
“Marshall Motor Holdings plc, one of the UK's leading automotive retail groups, issues its pre-close statement ahead of the release on 14 March 2018 of its full year results for the year ended 31 December 2017 ("FY17").
In the second half of FY17 ("H2"), the Group continued to build on the record financial performance reported during the first half of FY17 ("H1") and performed well against the background of a more challenging UK new vehicle market.
As a result, the financial performance of the Group during FY17 is expected to be ahead of our previously upgraded pre and post-tax expectations.”
FYDec18E PE c.7x, yield c.4%.
Eden Research (LON:EDEN) 9p £18.6m
FY Dec17 update from the Company that develops and supplies breakthrough biopesticide products and natural microencapsulation technologies to the global agrochemicals, animal health and consumer products industries. Rev of c.£1.9m, “significantly up from £0.4m in 2016, with a loss before tax of approximately £0.9m (2016: loss of £1.9m). Cash at bank at 31 December 2017 was c. £3.7m (2016: £1.5m). This was a good performance since the 2017 growing season was challenging for fungicidal products in many southern European countries due to hard frosts in April followed by high heat and drought in the summer. These well-documented conditions resulted in the smallest harvests in 60 years in key markets such as France and Italy.”