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Breakfast News - ECO Animal Health, Water Intelligence, BlueRock Diamonds and more...

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AIM:

Total number of AIM Companies (Incl Susp):

914*

Total number of AIM Companies trading:

847*

*as at close of business 24 January 2019

Standard List** of Main Market:

Total number of Standard List Companies

(Incl Susp):

145*

Total number of Standard List Companies trading:

128*

*as at close of business 24 January 2019

NEX Growth Market:

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

89*

Total number of NEX Growth Market Companies trading:

87*

*as at close of business 24 January 2019

*A corporate client of Hybridan LLP

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

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What’s cooking in the IPO kitchen?

Main Market (Premium)

“Potential” intention to float from DWF, a global legal business. HY Oct 18 revenue of £133.4m.

Main Market (Specialist Funds)

The Global Sustainability Trust -aiming for attractive risk-adjusted returns by investing primarily in private market investments that are expected to have a positive environmental and social impact raising c.£200m. Due 31 Jan 2019.

AIM

United Oil & Gas (LON:UOG) an oil and gas exploration and development company brought to the Official List (Standard Segment) in July 2017 by way of a reverse takeover of Senterra Energy plc. No capital to be raised, expected market cap of £17m and expected 28 Feb

Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m.

Speculation and Rumours

Bharti Airtel—Press reports of plans of a £6bn London IPO for India’s number two mobile operator.

Banquet Buffet

Safestay (LON:SFE) 83.95p £69.5m

Safestay, the owner and operator of an international brand of contemporary hostels, provided the following trading update for the 12 months to 31 Dec 2018.

Positive trading performance

39% increase in total revenues to £14.6m (2017: £10.5m)

Growth in Occupancy to 75.6% (2017: 72.8%)

Expect to deliver at least £3.4m in EBITDA (2017: £3.2m)

Added new hostel sites in Barcelona, Brussels and Vienna

Successful £10.36m capital raise in Dec 2018 to fund future expansion

Poised for European roll-out with 15 European cities identified

ECO Animal Health (LON:EAH) 465p £313.2m

ECO Animal Health, a wholly owned subsidiary of ECO Animal Health Group, announced that it has entered a second worldwide exclusive licensing deal with the Poultry Diagnostic & Research Center, College of Veterinary Medicine at the University of Georgia (UGA).

This deal, which follows on from the one leading to the development of potential vaccines in the field of Mycoplasma gallisepticum, allows ECO to further develop, register and commercialize a live attenuated Mycoplasma sy­noviae vaccine for poultry developed by UGA. University researchers have concluded preliminary proof of concept efficacy and safety studies with this vaccine.

Water Intelligence (LON:WATR) 395p £54.8m

Water Intelligence, a leading multinational provider of precision, minimally-invasive leak detection and remediation solutions for both potable and non-potable water announced a series of corporate transactions that reinforce its growth trajectory for 2019 and beyond.

Acquisition of Ontario (Niagara), Canada franchise, expanding corporate presence into Canada and Upstate New York

Sale of a new franchise territory for Youngstown, Ohio (US)

Financial support to an Idaho (US) franchise accelerating expansion into municipal offerings

Formal launch of ORCA municipal sewer product into the United States following trials at a UK water utility

BlueRock Diamonds (LON:BRD) 0.36p £1.44m

BlueRock Diamonds, the diamond producer, which owns and operates the Kareevlei Diamond Mine in the Kimberley region of South Africa, announced the recovery of an exceptional 8.97 carat diamond on 1 Feb.

This will be the third stone independently valued in excess of $50,000 mined from Kareevlei; the two previous record value stones were a 7.76 carat stone recovered in 2017 and sold for $10,070 per carat and a 10.58 carat stone recovered in 2018 and sold for $7,047 per carat.

TP Group (LON:TPG) 6.5p £48.32m

TP Group, the specialist services and engineering group, announced an order worth c.£1.2m by the MOD to provide Extendair® Lithium Hydroxide Curtains for management of localised Carbon Dioxide contamination on board submarines. This order is placed as part of the estimated £22m framework contract previously entered into between TP Group and the MOD to manage equipment availability and spares provision for air purification systems, as announced by the Company on 3 April 2017. The order will be delivered by Micropore Inc., TP Group's strategic partner in the United States, as announced on 24 May 2018.

The Micropore product complements the MOD's existing Carbon Dioxide removal products to support additional operating conditions and to offer emergency backup to other systems in the event of failure. The products are expected to be delivered to the MOD in early 2019.

Carpetright (LON:CPR) 20.8p £64.71m

Carpetright, Europe's leading specialist carpet and floor coverings retailer, announced a trading update for the 13 week period to 26 Jan 2019.

The Group's overall performance remains in line with expectations

As anticipated UK like-for-like sales remained negative for the period, although the trend has improved from that of the first half. Trading patterns have remained volatile week to week, against a backdrop of uncertainty and weak consumer confidence

Trading in the Rest of Europe has been tracking consistently ahead of the same period last year, driven by a strong performance in the Netherlands

We remain on target to achieve the £19m of annualised cash savings announced as part of the recapitalisation of the Group in May 2018

Landore Resources (LON:LND) 1.05p £9.94m

Landore Resources provided results of the Phase 1 of a Detailed Metallurgical Assessment of the BAM Gold Deposit, Junior Lake Property, Ontario, Canada.

Landore Resources engaged Allard Engineering Services LLC of Tucson, Arizona, USA to provide services for the design and supervision of a Detailed Metallurgical Assessment of the BAM Gold Project. The Scoping level test work programme was designed to select a suitable process route for the BAM Gold Deposit mineralised material.

98% extraction of gold is achievable with conventional milling, grinding to 100% passing 212 micron followed by gravity separation (+65%) and cyanide leaching.

Reagent consumption was very low with Cyanide Consumption at ±0.40 kg/t and

Lime Consumption at ±0.60 kg/t. Heap leaching with fine crushing and agglomeration can achieve acceptable extractions of gold (±84% at test conditions).

The results from the Metallurgical studies, will be incorporated into the Preliminary Economic Assessment (PEA) scheduled for completion in Feb 2019.

Tristel (LON:TSTL) 292.5p £129.59m

Tristel, the manufacturer of infection prevention and contamination control products utilising proprietary chlorine dioxide chemistry, announced the appointment of Dr. Bruno Holthof to its Board as a NED.

Dr. Bruno Holthof is the CEO of Oxford University Hospitals. Before OUH, he was CEO of the Antwerp Hospital Network from Jan 2004 until Sept 2015. Bruno Holthof is also Chair of the Board of Armonea, a European private care home provider.

Before becoming a CEO, he was a partner at McKinsey & Company. During this period, he served a wide range of healthcare clients in Europe and the United States and gained significant expertise in the areas of strategy, organisation and operations. He holds an MBA from the Harvard Business School and an MD/ PhD from the University of Leuven.

EnQuest (LON:ENQ) 19.7p £321.94m

Average Group production up 48% at 55,447 Boepd compared to 2017; above the mid-point of revised guidance

Strong performance at Magnus, with 100% interest delivering 21,528 Boepd in Dec, above expectations; high uptime, additional gas export and successful well interventions

Kraken average gross production of 30,310 Bopd was below expectations; reservoir performance remains on track with production limited by a combination of FPSO and weather related outages

Strong performance across other assets

Operating expenditure expected to be approximately $470m, with unit opex of c.$23/ boe; SVT operating costs reduced by around 25% to approximately £150m

Cash capital expenditure was approximately $220m; below guidance of c.$250m primarily due to phasing from 2018 in to 2019

At 31 Dec 2018, net debt including PIK was approximately $1,774m with cash and available bank facilities of around $309m

Credit facility net debt/ EBITDA ratio expected to be around 0.9x compared to future covenant threshold of 1.5x

2019 average Group production expected to grow by around 20% to between 63,000 Boepd and 70,000 Boepd

The Property Franchise Group (LON:TPFG) 123.5p £31.37m

The Property Franchise Group, one of the UK's largest property franchises, provided the following trading update for the year ended 31 Dec 2018, ahead of reporting its final results on 9 April 2019.

The Group performed well over the year with all its brands outperforming the market. Its hybrid brand, EweMove, traded profitably throughout the year and will show a significant improvement over FY17. Consequently, the Company expects to report trading for FY18 in line with market expectations and to show a material improvement on FY17 with enhanced margins.

Revenue increased by 10% to £11.2m (2017: £10.2m)

Management service fees (royalties) increased by 14% to £9.5m* (2017: £8.3m)

The Group was servicing c.55,000 tenanted managed properties at the year-end (2017: c.52,000)

Assisted acquisitions programme supported 28 acquisitions by franchisees (2017: 12) and added 3,115 managed properties (2017: 2,012)

Pay-per-click campaigns via the traditional high street brands' customer websites delivered an 83% increase in leads to 30,474 (2017: 16,609)

Heavily weighted toward lettings, which accounts for 68% of Management Service Fees (2017: 70%)

A strong balance sheet, with net cash of £2.2m at the year-end

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