Breakfast News - AIM Breakfast : Cenkos Securities, Ebiquity plc, Instem Plc, BlueJay Mining PLC, Next Fifteen Communications Group, Sopheon, Transense Technologies, Universe Group plc


What’s cooking in the IPO kitchen?


Alpha Financial Markets Consulting— Global provider of specialist consultancy services to the asset and wealth management industry. Due Oct. Revenue of £6.7 million for the year ended 31 March 2011 to £43.6 million for the year ended 31 March 2017 . Offer TBA. Due 11 Oct.

Cora Gold— West African focussed gold exploration business, significantly enlarged by the amalgamation of the gold exploration assets in Mali and Senegal of Hummingbird Resources and Cora Gold's former parent, Kola Gold. Due 9 Oct. Offer TBA

City of London Group (COLG) - Sch 1—RTO of Milton Homes Limited, an equity release provider which has a UK residential property portfolio of 586 properties with a market value of approximately £77 million as at 30 June 2017. Offer TBA. Due 5 Oct

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.”

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  


Breakfast buffet

Next Fifteen Comms (LON:NFC) 428.25p £316.7m

The digital communications group, has acquired Charterhouse Research Limited, a specialist financial market research consultancy.

The initial consideration for the acquisition is £2.75 million and is comprised of £1.74 million as an up-front payment for the business and £1.01 million for the net assets acquired. Of the total initial consideration, £2.58 million is to be satisfied in cash with the balance to be satisfied by the issue to the vendors of 41,598 new ordinary shares in Next 15. Further consideration may become payable based on the profits of Charterhouse for the years ending 31 January 2019 and 31 January 2020. Any deferred consideration that becomes payable will be fully satisfied by cash. The acquisition is expected to be marginally earnings enhancing for the Group in the current financial year.

For the year ended 31 August 2016, Charterhouse reported turnover of £2.69 million, adjusted profit before tax of £0.59 million and net assets of £0.78 million. Charterhouse is to be acquired debt-free.

FY Jan 18E rev £197.6m amd £29.6m PBT.

RedstoneConnect (LON:REDS) 125.5p £26.1m

The provider of technology and services for smart buildings and commercial spaces, has secured two new agreements for its In-Building Cellular ("IBC") and Distributed Antenna Systems ("DAS")solutions further extending the Company's reach into the Financial Services sector. The first agreement is to both install and manage an IBC solution at the new London headquarters of a leading global investment bank. This will deliver reliable and continuous mobile coverage across the entire of the 850,000 sq. ft. site for all 6,500 staff, as well as visitors and support teams, across all mobile networks. Construction is scheduled for completion by mid-2018. The second contract is for RedstoneConnect to provide an IBC and DAS solution for a global financial institution across two sites in Central London. The two offices occupy a combined area of almost 300,000 sq. ft. across 18 floors and accommodate over 5,000 people, ensuring reliable access to secure voice and data services.

FYJan18 rev £49.9m and PBT of £2.3M.

Sopheon (LON:SPE) 377.5p £28.14m

The international provider of software, expertise, and best practices for Enterprise Innovation Performance, today announced it has been named a Leader in The Forrester Wave™: Strategic Portfolio Management Tools, Q3 2017. Sopheon earned the highest scores possible in the following eight current offering criteria: program/ product management, alignment, validation, collaboration, data security, integrated risk management, practical usability and integration support.

Steven Moskowitz, Manager, Strategic Innovation at Sopheon customer Entegris, Inc. stated: "It comes as no surprise to us that Sopheon is considered a leader in strategic portfolio management. With the Accolade software we are able to slice and dice our data, permitting us to understand how well we are responding to the needs of a specific customer or regional market. This is tremendously valuable in allowing us to make better and more effective strategic decisions."  FYDec17E rev £20.3M and PBT of £2.24M. Pec.16x.

Instem (LON:INS) 169.5p £26.89m

HY Jun17 results from the provider of IT solutions to the global life sciences market.  Total revenues increased 13% to £10.3m (H1 2016: £9.1m)

·      Recurring revenues increased 23% to £6.5m (H1 2016: £5.3m), of which SaaS was £1.7m (H1 2016: £1.2m)

·      Proportion of recurring revenue to total revenue increased to 63% (H1 2016: 58%)

·      EBITDA of £0.6m (H1 2016: £1.2m)

Adjusted profit before tax of £0.1m (H1 2016: £1.0m).

After acquisition related payments of £0.5m in H1 2017 and £1.7m in H2 2016, net cash balance as at 30 June 2017 of £1.2m (H1 2016: £4.8m) .

Underlying trading remains strong.

“Whilst EBITDA for the period at £0.6m was below earlier expectations, the second half will benefit from approximately £750k of cost savings. As a result of our operational improvements and success in securing anticipated new business, we expect a satisfactory outcome to the year as a whole. “

Transense Tech (LON:TRT) 63.5p £6.05m

FYJun17 from the provider of sensor systems for industrial, mining and transportation markets. Each of the two business units have gained commercial traction which the Board expect to lead to increased revenues in 2018 and beyond.      Revenues steady at £2.00m (2016: £2.08m).     Increased opex investment in product development and commercialisation.    Pre tax loss from continuing operations for the year of £2.16m (2016: Pre tax profit of £1.59m, adjusted pre tax loss of £1.17m).  Net cash used in operations of £0.88m (2016: net cash generated £0.84m). Net cash at end of period of £2.52m (2016: £3.65m). ·      Signed significant, non-exclusive, license with General Electric ("GE") for single specialist  application using SAW technology

·      Market launch of iTrack II system for mining productivity with system now demonstrating   commercial successes following the adoption by major global mining companies

·      Probe sales gaining traction and first significant PCAS order in July 2017. We could see no 2018 forecasts.

Ebiquity (LON:EBQ) 114p £83.67m

The independent technology-enabled marketing and media analytics consultancy, announced Hy June 2017  results.    Total revenue up 5.6% on a reported basis  to £44.6m (HY2016: £42.3m), with revenue flat with 2016 on a like for life constant currency2 basis

·      Underlying PBT in line with market expectations and implementation of growth acceleration plan, down 21.8% to £6.2m. Net debt decreased as expected by £1.8m to £26.3m.“Our continued delivery against the milestones set out in the Growth Acceleration Plan and continued product investment, combined with recent client wins and a strong pipeline, are expected to provide positive momentum into the second half of the year. We are operating in a changing marketplace and continue to invest and position ourselves to be a beneficiary of this opportunity. We remain on track to meet our expectations for the year.” FYDec12E rev £89.4m and £12m PBT,. PE c.11x and yield 0.6%.

Universe Group (LON:UNG) 8.62p £20.03m

HYJun18 results from the  developer and supplier of point of sale, payment and on-line loyalty systems.

·     Revenues £8.70 million (H1 2016: £9.05 million)

·     Gross profit margin improved from 30.8% to 31.8%

·     Adjusted EBITDA £0.96 million (H1 2016: £1.35 million)

·     Net cash inflow from operations increased by 52% to £1.32 million.     Period of continued heavy research and development in next generation EPOS product suite.

“The balance of the year, and our ability to hit expectations rests upon the successful completion of a small number of key, high value, solution implementations and we are fully focussed on these.  However, there can be no certainty that they will be delivered before the year end.  Despite the difficulty in forecasting these in the short term, we are confident that the long-term prospects for the Group look encouraging.” FYDec17E rev £21.98m and PBT £2.53m.

Cenkos Securities (LON:CNKS) 115.5p £65.4m

HYJun17 results from the institutional stockbroker. "Revenue for the first half of 2017 increased by 91% to £29.2m (H1 2016: £15.3 million), with profits increasing by 156% to £4.2m (H1 2016: £1.7m). We are well placed to benefit from improvements in market conditions and have made a very good start to the second half of the year. There is institutional demand to fund high quality companies and ideas and since the period end we have been engaged in a number of significant fund raisings. Our current pipeline of transactions is encouraging.”. Raised  £982m in aggregate for clients in H1.  120 clients including  33 main mkt listed investment trust and 9 main market listed corporates. Corporate broking, research and commission  revenue down 15% to £4.4 million  due to  continued squeeze on commission rate. ‘We have made a very good start to the second half of the year. There is institutional demand to fund high quality companies and ideas.’ FYDec17E rev £52m, PBT

Bluejay Mining (LON:JAY) 18.5p £142.16m

The listed company with projects in Greenland and Finland, announced that its wholly owned subsidiary Dundas Titanium A/S has entered into the first agreement relating to ilmenite product produced from its Pituffik Titanium Project (‘Pituffik’) in Greenland.

Maiden agreement secured with experienced mineral sands processor allowing for the Company’s bulk sample run of mine (‘ROM’) material to be refined into a high specification ilmenite product (the ‘Product’).

The Product will then be used to seed the market with what is expected to be a high-quality and homogenous ilmenite concentrate that will advance offtake negotiations.

More importantly this agreement potentially connects the Company’s future mine product to the market.

Sandal (NEX:SAND) 28.5p £4.7m

The Company has been selected as a supplier to Howz as part of a trial with EDF Energy to provide home monitoring to EDF's elderly customers living alone. Sandal will be providing hardware to the solution and will also receive a recurring revenue stream from the provision of data collected.  This initiative is being launched today, 26 September 2017.    The initial trial is for 500 homes and if successful, it is anticipated that a larger trial will follow.  Alan Tadd, CEO of Sandal commented "This partnership has significant

potential for Sandal and represents the first use of our recurring income model for the supply of data. The Howz system won the Smart Home section of the EDF Pulse awards held in Paris last week. Although the current trial is for the UK market there is potential for use in other territories where EDF have a presence."

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