Proactive Investors - Run By Investors For Investors

Breakfast News - AIM Breakfast : Angus Energy Plc, Alliance Pharma plc, Empyrean Energy Plc., Gaming Realms PLC, Ingenta, Landore Resources Ltd., Nakama Group plc, Integumen, Surgical Innovations Group

Breakfast News - AIM Breakfast : Angus Energy Plc, Alliance Pharma plc, Empyrean Energy Plc., Gaming Realms PLC, Ingenta, Landore Resources Ltd., Nakama Group plc, Integumen, Surgical Innovations Group

What’s cooking in the IPO kitchen?


Springfield Properties—Scottish housebuilder. Intention to float. Offer TBA “Our turnover exceeded £100 million for the first time this year and now we employ around 500 people. This IPO is the next step in our growth.”

Warehouse REIT  -  The Company will invest in a diversified portfolio of UK warehouse assets located in urban areas.  The Company is targeting a dividend yield of 5.5p equivalent to a yield of 5.5 percent. for the year ending 31 March 2019. Issue price 100p. Offer TBA. Due 20 Sep

OnTheMarket—Intention to float on AIM to raise c. £50m which will be used to fund the growth of the portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m.

Main Market Premium Listing

People’s Investment Trust—Objective of sustainable wealth creation. Also to list on the Social Stock Exchange. Targeting £125m raise on 17 Oct. No performance fees or executive bonuses in order to focus on long term rather than short term performance.

Charter Court Financial Services Group—Intention to float. Specialist lender serving the UK residential mortgage market. The net mortgage loan book stood at £4.4 billion as at 30 June 2017 growing at a compound annual growth rate of 92 percent since 31 December 2014.  Part vendor sale and £20m primary raise.

ContourGlobal LP—Report on Bloomberg that the thermal energy power generator is considering a London listing.

Hipgnosis Songs Fund investment Company offering pure-play exposure to Songs and associated musical intellectual property rights. Offer raising £200m at 100p. The Company has decided to extend the closing date for the Placing, Offer for Subscription and Intermediaries Offer to 1 August 2017.  The Company may bring forward this closing date at any time. Admission 15 September 2017

Breakfast buffet

Empyrean Energy (LON:EME) 24.75p £98.75m

“The oil and gas development company with interests in China, Indonesia and the United States, announced that it has been informed by Sacgasco Limited (ASX: SGC) ("Sacgasco"), the operator of the Dempsey 1-15 well in the Sacramento Basin, onshore California, that it has completed drilling the 8 1/2" vertical hole. Drilling last night intersected two further zones of high gas shows. Shareholders and investors are advised that the significance of these shows will become more apparent when the wireline logs are run to more fully evaluate the intersected gas shows and reservoirs. The hole is currently being conditioned for logging.”

The Dempsey 1-15 well location sits next to existing gas metering and surface infrastructure that is owned by the joint venture. This will allow for any gas discovery to be tested and connected into the local pipeline at relatively low cost and in an accelerated timeframe.

Landore Resources (LON:LND) 2.25p £17.7m

The Company’s wholly owned subsidiary, Landore Resources Canada Inc. has  entered into a debt settlement agreement with Lamaune Iron Inc. Pursuant to the Debt Settlement Agreement, Lamaune has agreed, conditional on its own shareholder approval, to issue to Landore Canada 576,192,087 common shares in the capital of Lamaune, in full satisfaction of the loan receivable from Lamaune. Following the issue of the shares, Landore Canada will hold 90.2% of the issued shares of Lamaune. Earlier work suggested that  several  previous gold findings including the Lamaune Gold Deposit, were similar in geology and mineralisation to the BAM East Gold Deposit.

Integumen (LON:SKIN) 3.08p £5.1m

The personal health care company developing and commercialising technology and products for the human integumentary system,  has signed a worldwide Patent Licence Agreement with Dr Gary Hack for his co-rights to various patents and know-how related to enhancing and extending the cosmetic benefits of botulinum toxin (commonly known as Botox) treatments as well as dermal fillers and rosacea known as the "Botox Booster IP".  This is complementary to the Visible Youth Professional product line.  The patents of Botox Booster IP include the use of Hyaluronic acid and bioactive glass powders to enhance and extend the beneficial cosmetic effects of certain non-surgical dermal interventions;     

·         The global market for facial aesthetics is forecast to reach $4.7 billion in 2018, of which the US is expected to contribute over US$2 billion;

·         Visible Youth consumer range to be launched in 2018.


Alliance Pharma (LON:APH) 52.5p £249.01m

HYJun17 results from the speciality Pharma Company. Revenue up 8% to £50.3m. Kelo-cote™ up 52% to £6.2m. MacuShield™ up 67% to £3.4m. EBITDA up 3% to £13.6m. Free cash flow (excluding Sinclair settlement) up £9.0m to £11.1m. Net debt down £12.7m to  £63.4m.

“Having delivered results in this period in line with expectations, and having a sound platform in place, we look forward to the second half and beyond with confidence.”

Nakama Group (LON:NAK) 1.68p £1.97m

Board changes from the recruitment consultancy working across the UK, Europe, Asia, USA and Australia providing staff for the Web, Interactive, Digital Media sectors, IT and Business Change. After six years at Nakama Group plc, Rob Sheffield has resigned with immediate effect.  Rob was a founding partner at Nakama and moved to Australia as MD for APAC and was promoted to CEO APAC and Group CEO in August 2015. Angus Watson, the current CFO, will act as interim CEO. We could see no forecasts.

MyCelx Tech Corp (LON:MYX) 100p £18.63m

HYJun17 results from the   clean water technology company providing patented solutions for the Oil and Gas market and commercial industrial markets worldwide.

·51% increase in Revenue YoY: $5.9 million (2016 H1: $3.9 million)

·EBITDA of $0.3 million (2016 H1: negative $0.6 million)

·Gross profit margin of 52.2% (2016 H1: 53.5%)

Cash $4.7m.

“As the market recovers and resets the Board of Directors and the Company are well aware of the challenges the Company faces. MYCELX believes that market conditions could improve in H2 but is maintaining a cautious outlook for its business for the remainder of the year”. We could see no forecasts.

Angus Energy (LON:ANGS) 32.88p £79.05m

The drilling of Lidsey-X2 has now commenced at the Lidsey Oil Field near Bognor Regis.

Lidsey-X2 is a conventional production well targeting the existing Great Oolite Reservoir. The existing production well Lidsey-X1 has been temporarily suspended due to the site preparation works required for the drilling of Lidsey-X2.  Design options are currently under consideration to either convert the Lidsey-X1 into a water injector or perform production from the Kimmeridge. No decision will be made until a full analysis of the Lidsey-X2 drilling results are complete.  The current works have an expected operating window of approximately six weeks before actual production from the Lidsey-X2 horizontal well commences.  

Surgical Innovations (LON:SUN) 4.35p £23.25m

HY Jun 17 results from the designer, manufacturer and distributor of innovative medical technology for minimally invasive surgery. Strong results and  good progress on the integration of Elemental Healthcare Limited, which was acquired on 1 August 2017. Revenues up 14.1% to £3.47m.  Operating margin up to 8.8% (2016H1: 1.0%, 2016 FY: 7.7%).   Profit before taxation of £0.30m (2016H1: loss of £0.06m, 2016 full year: £0.28m). Increased net cash at bank of £1.16m (31 Dec 2016: £0.72m). Trading in the second half of the year to date has been satisfactory, and continues to meet the board's expectations. Remains acquisitive.

Gaming Realms (LON:GMR) 8.6p £24.46m

HY Jun 17 results from the Company which creates, publishes and licenses next generation mobile games. Like-for-like revenue growth of 5% to £15.7m (H1/16: £14.9m.) Adjusted EBITDA loss reduced by 71% to £0.9m (H1/16: £3.1m), with Loss before Tax on continuing operations reducing by 30% to £4.1m (H1/17: £5.8m)

·Continued execution in cost reductions, in particular marketing optimization on real money gaming, was 26% lower at £4.8m (H116: £6.5m), whilst revenues grew 5% to £10.7m (H1/16: £10.2m) and head count reduction of 28 staff through synergies in our social publishing for annualized costs saving of approximately £2.0m, reflecting both improved operational and marketing efficiency. ·The Group is expected to be EBITDA positive for 2017 as a whole and significantly EBITDA positive in H2 2017. Real money gaming average daily revenue up 11% so far in Q3 2017 compared to same period in 2016.   Social publishing is now EBITDA positive. FYDec17E rev £38.9m and £0.3m PBT.

Ingenta (LON:ING) 161.5p £27.33m

HYJun17 results from the provider of software and services to the global publishing industry. ·Group revenues up 8% to £7.75m (2016: £7.18m)

·Adjusted EBITDA up 116% to £659K (2016: £305K)

·Operating profit down 6% to £321K (2016: £341K)

·Cash at 30 June 2017: £1.3m (2016: £1.3m)

·First Commercial Order to Cash (OTC) module went live in Q1

·Successful Content Management System (CMS) go live in Q1

·Sales team recruitment completed in Q2

·Good sales pipeline growth with promising opportunities in new market segments

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