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Breakfast News - Arena Events, Uvenco UK, Patagonia Gold and more...

Published: 10:15 21 May 2018 BST

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Small Cap Breakfast

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AIM:

Total number of AIM Companies (Incl Susp):

940* 

Total number of AIM Companies trading:

884*

*as at close of business  18 May 2018

Standard List**  of Main Market:

Total number of Standard List Companies

(Incl Susp):

136*

Total number of Standard List Companies trading:

123*

*as at close of business  18 May 2018

NEX Growth Market:

Total number of NEX Growth Market Companies (Incl Susp): 

86*

Total number of NEX Growth Market Companies trading:

84*               

*as at close of business  18 May 2018

*A corporate client of Hybridan LLP 

**  Standard Listing as defined by Hybridan LLP to be a business with strictly operational activity

 

                            

Dish of the day

No Joiners Today

Off the menu  

Engineering Group GKN has left the main market following an £8bn takeover by Melrose.

 

                                             

What’s cooking in the IPO kitchen?

AIM

Block Energy— UK based oil exploration and production company whose main country of operation is the Republic of Georgia.  Raising £4m. Mkt cap £9.3m. Due early June.

Codemasters Group— video game developer and publisher, specialising in high quality racing games.  Offer TBA. Seeking £15m in primary. Due 1 June.

Strongbow Exploration (TSX:SBW) intends to dual list on AIM.  Holds rights to the South Crofty underground tin mine, a former producing tin mine located in the towns of Pool and Camborne, Cornwall . The project is estimated to require the Company to raise £25 million over the next 18 months to progress to a production decision. Offer TBS. Due June. 

Maestrano Group,  a software company with operations in Australia (main country of operation), the UK, US and the UAE, is looking to join AIM. Offer TBC, expected late May. 

Yew Grove REIT—newly formed Company will pursue its investment objective by investing in a diversified portfolio of Irish commercial property. Offer TBA. Due Late May

Team17 Group -video games label and creative partner for independent developers. 2017  revenues of £29.6m  and Adjusted EBITDA  of  £12.9m.  Raising £45.1m primary and £62.5m secondary at 165p. Mkt Cap £216.6m.  Expected 23 May 2018

Serinus Energy -international upstream oil and gas exploration and production company. Its principal assets are located in Romania (development phase) and Tunisia (production phase).  Raising c.£10m at 15p. Due 18 May. Mkt cap £32.6m

On the horizon (speculative and rumoured IPOs)

GEMS Education-  Press report s that the Dubai-based education provider may announce plans as early as this week to list in London,  rebuffing interest from a private equity firm for a stake in the school operator backed by Blackstone Group LP.

 

                       

Breakfast Buffet

AFH Financial (LON:AFH) 330p £124.8m

“The Board of AFH, a leading financial planning led wealth management firm, announced the completion of the acquisition of the client portfolios of Meritor, the financial advisory business of Freeths LLP, a national legal practice.

Under the terms of the acquisition, the maximum purchase price is £0.53m dependent upon performance criteria of the assets acquired. The transaction is expected to add approximately £330,000 of annual recurring revenue.

The initial consideration for the acquisition is £330,000 in cash, funded from the Company's existing cash resources. Further deferred consideration will be payable in cash over the next 14 months, subject to performance criteria of the assets acquired being achieved.”

Pec.17x, yield c.1.5%.

AorTech International (AOR.L) 36.5p £2.03m

£2.1m conditional placing and subscription at 30p. Proposal to raise a further £0.5m by way of a conditional Open Offer subject to Shareholder approval.

Proceeds to be used over a two year period to fund the development of textile substrate products (patches and grafts); stage one of heart valve development; investment in capital equipment for heart valve manufacturing and testing and for general working capital purposes.

Shares down 17% today. We could see  no forecasts.

 

Gateley Holdings (LON:GTLY) 171.65p £183.5m

FY Apr18 trading update from the national commercial law and complementary professional services group .

Trading in the second half of the financial year has remained strong and the Group performance for the full year is in line with market expectations. The Board is delighted with revenue and profit growth in the year which has enabled the Group to not only increase its returns to shareholders, but also to further invest in the business. Subject to audit, revenue for the financial year ended 30 April 2018 will be not less than £84m (2017: £77.6m) and adjusted EBITDA is expected to be not less than £16m (2017: £14.9m).  PE c.14x, yield 4 to 5%.

 

Arena Events (LON:ARE) 60.75p £71.16m

Arena “has expanded its UK product portfolio with the acquisition of specialist temporary cold room company Ice House Rentals Ltd.

The acquisition will see the Hampshire based company be integrated into Arena's current furniture and tableware business, Well Dressed Tables. With more than 200 cold rooms, Ice House Rentals provides temporary cold room hire throughout the UK and supplies some of the UK's most prestigious events including Royal Ascot.

This latest acquisition is in line with Arena's growth strategy and will significantly strengthen the Company's offering to existing clients as well as help attract new clients.”

PE c.12x, yield 3 to 4%.

 

Uvenco UK (LON:UVEN) 1.25p £0.96m

“On 14 May 2018 the Company announced that it was in discussions with a third party that might have led to the sale of its trading subsidiaries, Uvenco Limited, the vending operator, and Snack in the Box Limited, the franchising operator, together with the assumption of a substantial proportion of the Company's debt obligations. The Company further announced that it would be likely that any consideration receivable by the Company would be minimal.  

The Company has now been informed that the potential buyer is no longer considering buying those companies as going concerns. However, the Company has received, from the same potential buyer, an offer to acquire the assets of Uvenco Limited, Snack in the Box Limited and the Group's other trading subsidiary, Drinkmaster Limited, and an alternative offer to buy Drinkmaster Limited alone as a going concern.” We could see no forecasts.

 

GAN (LON:GAN) 69.4p £44.1m

The award-winning developer and supplier of enterprise-level B2B Internet gaming software, services and online gaming content in the United States, has conditionally raised £7.5m through an over-subscribed Subscription at an issue price of 50p per Ordinary Share by US institutional shareholders . 

Net proceeds of the Subscription to substantially increase GAN's software engineering resources to better serve existing major US clients' services such as the WinStar.com Overseas Internet Casino, launch new US clients and new services in the US in anticipation of Internet sports betting following the US Supreme Court's decision to lift the Federal Ban on sports betting delivered on May 14, 2018. Also paying off £2m 9% convertible loan note.

FYDec18E rev £14.79m and £2.97m loss.

 

Patagonia Gold (LON:PGD) 121p £28.6m

“The mining company with gold and silver projects in the southern Patagonia region of Argentina, Chile and Uruguay, announced that further to the announcement of 1 February 2018, the Company has made the final payment for the acquisition of the Calcatreu Deposit.

On 18 May 2018, Patagonia Gold paid the balance of $10m to Pan American Silver, corresponding to the second and final payment for the acquisition of the Calcatreu Deposit.

The Company initiated exploration work at Calcatreu shortly after acquiring the project at the end of January 2018. The current programme consists of the completion of 30 line km of Pole Dipole IP geophysics, mapping and geochemistry.  The current programme is due to be complete by mid June and the Company intends to start a drill programme to test the main targets in September 2018.”

 

Sativa Investments (AQSE:SATI) 2.875p £11.6m

“Sativa Investments, a medicinal cannabis investment vehicle, has subscribed for 500,000 new shares at C$0.40 per share, at a cost of C$0.2m cash, in Canadian-based emerging global pharmaceutical company Veritas Pharma Inc, which is tri-listed on the Canadian Securities Exchange, America's OTC exchange and the Frankfurt Stock Exchange. Veritas Pharma focuses on the discovery, product development and commercialisation of effective patented Medicinal Cannabis therapies which target disease conditions in the areas of chronic pain, senior long-term and palliative care.

 

Concurrent Tech (LON:CNC) 76.5p £55.6m

“Concurrent Technologies Plc, a world leading specialist in the design and manufacture of high-end embedded computer boards for critical applications, is pleased to announce a range of rugged VPX boards that have now completed thermal, shock and vibration qualification testing. The VPX range is based on the Intel® Xeon® processor family and variants can be customised with a range of memory and security enhancements without compromising the minimal size, weight and power (SWaP) characteristics of the boards. This combination of processing power, small SWaP footprint, robust security and capability to operate in extreme environments is ideal for the defence sector where this class leading technology is expected to be integrated into both battlefield and support applications.” PE c.11x, yield c.3%.

 

Toople (LON:TOOP) 0.88p £1.78m

“Toople Plc, a provider of bespoke telecom services to UK SMEs, is pleased to announce another significant contract win.

The Company has signed a 24 month contract with a South East based IT, cloud and telecoms provider to move its wholesale telecoms spend to Toople. The contract is expected to be worth at least £360,000 over the contract period.

Andy Hollingworth, CEO, Toople Plc, commented: "It's really pleasing to see the first material contract win, so soon after the review of our wholesale strategy.  The partner had been using the Merlin wholesale provisioning platform as a trial and as a result of the trial the contract was agreed." “

 

 

 

 

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