Proactive Investors - Run By Investors For Investors

Breakfast News - AIM Breakfast : 7digital, Amphion Innovations Plc, Corero Network Security PLC, Kier Group, Petra Diamonds, Slingsby (H.C) Plc

Breakfast News - AIM Breakfast : 7digital, Amphion Innovations Plc, Corero Network Security PLC, Kier Group, Petra Diamonds, Slingsby (H.C) Plc

What’s cooking in the IPO kitchen?


AnimalCare—RTO of Ecuphar NV, a European animal health company. £30m raise. Ecuphar FY16 rev £68.4m, underlying EBITDA £8.9m. Due 13 July.

Angling Direct  -Schedule 1  from the specialist fishing tackle retailer in the UK . Offer TBA. Expected  mid July.

NEXUS Infrastructure—Offer TBA.  Provider of essential infrastructure services to the UK housebuilding and commercial sectors. Expected 11 July. FYSep16 rev £135.7m.

Tatton Asset Management –Sch 1. Provider if services to FCA authorized financial advisers. Raising £10m at 156p. Secondary offer £41.6m. Due 6 July.

GYG—Intention to float by the superyacht painting, supply and maintenance company. Due 5 July. Raising £6.9m new plus vendor sale of £21.5m at 100p. Mkt Cap c. £47m.  Revenue of €54.6m in FY16 and adjusted EBITDA of €6.7m.

Greencoat Renewables  - Schedule 1. Targeting a portfolio of operating renewable electricity generation assets, initially investing in wind generation assets in Ireland.  Offer TBC. Due Mid July.

FFI Holdings — Specialist in the provision of completion contracts to the entertainment industry for films, television, mini-series and streaming product. Raising £59m at 150p. Expected 30 June.

QUIZ — Omni-channel fast fashion womenswear Company intention to float. Due July 2017.  Offer TBA

Ethernity Networks —Schedule 1 from Israeli based specialist in data processing technology used in high end carrier ethernet applications across the telecom, mobile, security and data centre markets. Expected 29 June.  Raising £15m at 140p. Mkt Cap £45.5m.

Jangada Mines — Sch 1  advanced stage PGM exploration project containing what the Directors understand to be the largest PGM resource, and only pre-development PGM project, in South America.  Raising £2.25m. Mkt Cap £9.9m.  Expected 29 June.

Phoenix Global Mining — US Brown field copper play. Expected late June. Offer TBA

I3 Energy –Schedule 1. Independent oil and gas company with assets and operations in the UK.  Offer TBC, 7 June admission.

Verditek — Sch 1 update. The Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Issue price 10p.  Admission late June

Main Market Standard Listing

Rockpool Acquisitions —Northern Ireland based Company seeking  strong NI acquisition with an international outlook. Raising £1.5m at 10p. Due 5 July.

Main Market Premium Listing

Hipgnosis Songs Fund investment company  offering pure-play exposure to Songs and associated musical intellectual property rights. Prospectus yet to be published.

Impact Investment Trust —Exposure to a diversified portfolio of funds providing SMEs across developing economies with the growth capital they need to have a positive impact on the lives of the world's poorer populations. Raising up to $150m at $1.00

Residential Secure  Income -  social housing REIT  raising up to £300m Admission due c.12 July.

Curzon Energy —Report on Proactive Investors of intended LSE float this year  with acquisition of  coal bed methane assets in Oregon. Looking to raise £3m plus.

NLB Group —financial and banking institution based in Slovenia, with a network of 356 branches. Seeking Ljubliana Stock Exchange listing with GDRs on the LSE. Expected mid June.

Kuwait Energy — $150m raise plus vendor offer. Admission due June.  2p reserves 810.0 mmboe

Main Market Specialist Funds

Supermarket Income REIT– Up to £200m raise to acquire a diversified portfolio of supermarket real estate assets in the UK, providing long-term RPI-linked income. Due 21 July.

Breakfast buffet

Kryptonite 1 PLC (NEX:KR1) 3.5p £2.1m

The Company has taken part in an Initial Coin Offering ("ICO") of the Bancor Foundation ("Bancor"). The Company has invested GBP 83,416 for 46,860 Bancor tokens in the ICO, which successfully raised a total of $153 million. Bancor is developing tokens which it believes will do away with the exchanges on which cryptocurrencies are usually traded. Instead of having a middleman that matches buyers and sellers, Bancor tokens will do the matching themselves, using automatically executed rules called smart contracts that are coded into the tokens. The Company has also taken part in the first phase ICO of The Funfair Project ("Funfair"). The Company invested GBP 384,028 for 73,272,717 Funfair tokens. The ICO successfully raised a total of $26 million. FunFair is a decentralised gaming platform powered by Ethereum smart contracts.

Creightons (LON:CRL) 27p £16.35m

FY Mar 17 results from the Group involved in creating the finest quality personal care and beauty products. Revenue increased by 45.7% to £30.6m.  Operatin­g profit increased by 171% to £1,513,000. Cash generated £1.2m (2016: £0.9m). Diluted EPS 1.88p (2016: 0.84p). Proposed final dividend 0.23p per ordinary share (2016: No dividend). "The management team has achieved a significant improvement in the customer base, both in the UK and overseas, with a broader range of products, expansion in the premium sector, extended production capability and capacity, and continued positive cash generation. The Group is poised for further growth." We could see no forecasts in the market.

Kier Group (LON:KIE) 1216p £1.1bn

FY Jun 17 trading update from the property, residential, construction and services Group. ·    Full-year underlying profit forecast to be in line with expectations;

·      Net debt anticipated to be c£150m, at the lower-end of market forecasts;

·      Two-year portfolio simplification programme nearing conclusion; and

·      Well-placed for FY2018, with growing order books of approximately £9bn and 85% secured revenue position for FY2018.

FYJun17E rev £4.3bn, PBT £126.8m PE c.11.4x, yield 5.5%. m


Petra Diamonds (LON:PDL) 104.3p £554.86m

FYJun17 update. The Company is on track to achieve record revenue & production figures in FY 2017. However, due to the slower than anticipated build-up of its expansion programmes across its operations, production is now estimated to be ca. 8-9% lower than guidance of ca.4.4 million carats. As a result, revenue is expected to be ca. 8-9% below market consensus (£404.3m) and financial results for the Year are therefore also forecast to be below market expectations (PBT £94.3m). The Company has now reached an operational run rate across the Group which supports FY 2018 production guidance of ca. 5 million carats (which, as stated before, is being reached a year earlier than originally anticipated). Not expecting any issue regarding banking covenants.

Real Estate Credit Investments (LON:RECI) 167.75p £151.33m

Intention to raise a minimum of £12m at no less than the aggregate of the published Net Asset Value per Ordinary Share at the time of the Placing net of any dividend declared at the time. The Company intends to utilise the net proceeds of the Placing to invest primarily in debt secured by commercial or residential properties in the United Kingdom and Western Europe.

Escape Hunt (LON:ESC) 147p £29.78m

The global escape game company, announced its results for the seven month period to 31 December 2016, when it traded under the name of Dorcaster. £9.7 million raised on admission to AIM in July 2016. Pre-tax loss of £1.61 million for the period to 31 December 2016 - expenditure largely comprised transaction costs of admission to AIM and subsequent investment strategy. Strong cash position of £7.9 million as at 31 December 2016 .  The Escape Hunt Group achieved turnover of £1.1 m for FYDec16 and PBT of £320k. Since 31 December 2016, the Escape Hunt Group has continued to trade in line with the Directors' expectations.

Corero Network Security (LON:CNS) 20p £23.67m

The network security company, announced that its SmartWall® Threat Defense System  technology has been selected to protect a high profile US Federal Government agency. The $0.4 million order provides DDoS mitigation capacity for a number of the agency's sites delivering up to 200Gbps of always-on protection. The solution comprises multiple Corero SmartWall products, with supporting SecureWatch® services for one year. FYDec17E rev £9.51m and £5.6m loss.

7digital Group (LON:7DIG) 7p £13.49m

AGM Statement from the specialist  in B2B end-to-end digital music solutions.  As announced on June 20, the Company estimates that the Acquisition (24-7 Entertainment) will increase 7digital licensing revenue in 2017 by approximately £5m and more than £8m in 2018. The Company believes that by increasing the investment in its core platform in 2017, it can accelerate integration allowing for quicker cost reductions and higher profitability in 2018. The Board now expects 2017 to result in a combined EBITDA loss of c.£1.5m.  2018 profits are anticipated to increase significantly to an estimated EBITDA of £3.4m compared with previously anticipated £1.9m.

Amphion  Innovations (LON:AMP) 2.62p £5.45m

FYDec16 results from the developer of medical, life science, and technology businesses. developer of medical, life science, and technology businesses.  NAV fell to US -$5,886,381 (2015: US $10,892,072) as at year-end due almost entirely to the movement in value of the Motif Bio Plc share price. Motif Bio completed treatment of patients in its Phase III trial (REVIVE-1) for its product
candidate iclaprim and listed on NASDAQ, raising £20.0 million. The formation of Polarean Imaging Limited and the closing of the pre-IPO has put this exciting company on track for a listing later   this year.

Slingsby (LON:SLNG) 47.5p £0.47m

AGM Statement from one of the market leaders in the distribution of industrial and commercial equipment. "In the Chairman's Statement accompanying our annual results for the year ended 31 December 2016, it was reported that Group sales were 7% higher in the four months to 30 April 2017 on the corresponding period in 2016. I reported that some of this gain was due to several large orders received in 2016 but delivered in 2017.  Sales for the five months to 31 May 2017, were 6% higher than the prior year with Group sales for May 2017, 2% higher than in May 2016.” Encouraged by  improved trading but also cautious due to the volatility experienced in the recent past.

Join Proactive’s Crypto, Blockchain and Cannabis Telegram group here

This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity and is not a personal recommendation to anyone. Recipients should make their own investment decisions based upon their own financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.

The information contained in this document is based on materials and sources that are believed to be reliable; however, they have not been independently verified and are not guaranteed as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information in this document nor should it be relied upon as such.

Any and all opinions expressed are current opinions as of the date appearing on this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.

This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, does not constitute “independent investment research” for the purposes of the Financial Conduct Authority rules. The individuals who prepared this document may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, directors, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.

In the UK, this document is directed at and is for distribution only to persons who (i) fall within Article 19(5) (persons who have professional experience in matters relating to investments) or Article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) or (ii) are Professional Clients or Eligible Counterparties (as those terms are defined in the rules of the Financial Conduct Authority) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as “relevant persons”). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by persons who would be classified as Retail Clients (as defined by the rules of the Financial Conduct Authority).

Neither this document nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of UK or US securities law, or the law of any such other jurisdictions.

Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, directors, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.

Neither the whole nor any part of this document may be duplicated in any form or by any means. Neither should this document, or any part thereof, be redistributed or disclosed to anyone without the prior consent of Hybridan LLP.

Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use