Breakfast News - AIM Breakfast : DXS International plc, Blue Star Capital, Digital Barriers, ITM Power plc, Nature Group Plc, Premaitha Health, Tern 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 focused 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.

Main Market Standard Listing

Curzon Energy—Intention to float from the energy Company pursuing a targeted acquisition strategy. Raising £2.3m Gross.  First acquisition is 100% of Coos Bay Energy LLC, owner and operator of c. 45,370 acres of coalbed methane leases, targeting first gas by the end of 2017. Price TBA.

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.

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


Breakfast buffet

ITM Power (LON:ITM) 42.75p £107.14m

Intention to raise £25m at 5p plus an open offer of up to £4.4m. 5.3% discount to yesterday’s close. Net proceeds will be utilised by the Company to provide working capital to support the delivery of the contract backlog and opportunity pipeline, to move to new larger facilities to increase annual production capacity, to strengthen the Group's balance sheet, and to move toward achieving positive cash flow and profitability within the medium term.

"We are delighted to disclose our c.£180 million opportunity pipeline of highly qualified tenders, which sits behind our growing backlog of contracted orders. This demonstrates significant traction for ITM Power's products and the growing momentum in the hydrogen energy market overall.”

FYApr18E rev £3.62m and £4m loss.

Nature Group  (LON:NGR) 3.38p £2.68m

HYJun17 results from the provider of port reception facilities and waste treatment solutions for the oil, marine and process industries. Revenues for the period of £ 5.4 million (H1 2016: £ 6.2 million)

·     Underlying pre-tax loss of Continuing Operations for the period of £ 1.8 million (H1 2016: loss £ 0.9 million)

·     Finalized the sale and transfer of the NPRF Gibraltar assets on 16th of January 2017 for a consideration of £4.0 million.

·   Profit from Discontinued Operations for the period of £ 2.0 million (H1 2016: loss £ 0.6 million) due to the combination of a book profit on the sale of NPRF Gibraltar and a book loss due to the dissolvement of Nature Environmental Services Limited  in Jersey.

Net debt £1m. Since the period end, the Board has been managing the cash position of the Group on a daily basis and is currently in discussions in regards to a number of strategic options which include the provision of immediate liquidity to the Group.

Premaitha Health (LON:NIPT) 8.62p £26.1m

FYMar17 results from the international molecular diagnostics group focused on non-invasive prenatal testing. Revenues increased by 26% to £3.1m (2016: £2.5m), including one month contribution from Yourgene Bioscience ("Yourgene"), which was acquired in March 2017 -  Revenues increased by 48% excluding a non-recurring 2016 equipment sale

Operating loss reduced by 37% to £7.6m. Cash of £1.3m at 31 March 2017 (31 March 2016: £5.3m)

-  Additional US$5.0m loan funding secured from Thermo Fisher in July 2017. Six month revenues to 30 September 2017 are expected to be up by approximately 75% to £2.6m. “The Company does continue to face a number of headwinds, not least the continued unwanted legal attention from Illumina. However, supported by strong technology, a growing international commercial footprint, support from our platform partner and a dedicated global team, I believe we have a very strong foundation from which to continue growing in 2017/18 and beyond.”

Tern (LON:TERN) 5.62p £6.31m

“Further to the announcement of 11 August 2017, Tern PLC, the investment company specialising in the Internet of Things ("IoT"), is pleased to announce that its investee company, Device Authority Limited ("Device Authority"), commenced its fundraising activity with US Capital Partners (www.uscapitalpartners.n­et) on 28 September 2017 to raise new equity through a private placement offering.  The investment opportunity is initially available to registered accredited investors and will be open for up to 120 days. As previously announced, the minimum total subscription to be accepted by Device Authority through the private placement will be $2.5 million, out of a total $10 million offering, and first close is now expected to be during October 2017.  The fund-raising attributes a pre-money valuation to Device Authority of $36 million”. Upon completion of the $2.5 million first close, Tern's ownership will be 53.2%.”

Digital Barriers (LON:DGB) 18.5p £30.55m

FYMar17 results from the specialist provider of visually intelligent technologies to the global surveillance, security and safety markets. ·     Revenues from continuing operations grew 25% to £26.5 million (2016: £21.1 million)

·     Adjusted loss before tax increased to £9.8 million (2016: £4.7 million). This follows several key sales failing to close in the final quarter.

Following internal review the Video Business is up for sale. 2 interested parties. The cash consideration being offered under both proposals is expected to be in excess of the current market capitalisation of the entire Group at close of business on 28 September 2017. Trading in the first half of the current financial year has been good with unaudited revenues to the end of August 13% ahead of the same period last year. Backlog has grown even more strongly with Brimtek performing particularly well in the first half although the lower margin nature of these sales will reduce the profit impact in H2. 

Blue Star Capital (LON:BLU) 0.33p £5.7m

“The investing company with a focus on new technologies, announces  an update in respect of SatoshiPay's proof of concept project with the IOTA Foundation to explore replacing Bitcoin with an alternative cryptocurrency, IOTA, as SatoshiPay's settlement network.

Since the Company's announcement of 31 August 2017, SatoshiPay and IOTA Foundation have completed the proof-of-concept website and are working with potential publishing partners to secure content in the coming weeks before making the website available to the public.”

Norman Broadbent (LON:NBB) 11p £5m

HYJun17 results from the provider of Talent Acquisition & Advisory Services, comprising Board and Executive Search, Interim Management, Research & Insight, Leadership Consulting & Assessment, and executive-level Recruitment Solutions. The Group incurred an operating loss of £667,000 (2016: loss £62,000) on turnover of £3,292,000 (2016: £3,366,000).  Improve­ment in trading as compared to the 6 months to 31 December 2016 which had resulted in an operating loss of £1,161,000 on turnover of £2,295,000.

·      Phase One of the turnaround completed; Phase Two of the turnaround underway

·      New Senior Leadership Team appointed across all NB brands. Raising £1.23mm by accelerated bookbuild.

We could see no forecasts.

RedstoneConnect (LON:REDS) 143.5p £29.41m

“Notes the announcement of 4.52pm on 28 September 2017 by A P Systems Holdings Ltd regarding an initial approach to the directors of RedstoneConnect about a possible offer for the Company.

The directors of RedstoneConnect confirm they have not been approached by A P Systems Holdings Ltd, nor have they had any discussions with A P Systems Holdings Ltd and have not received an offer for the Company.

Shareholders of RedstoneConnect should take no further action”.

FYJan18E rev £49.9m and £2.3m PBT. PE c.13x.

DXS International (AQSE:DXSP)6.5p £2.2m

FYApr17 results from the provider of clinical decision support to the primary care and retail pharmacy sectors in the UK .

“Although the past year has been challenging with continuing uncertainty and changes within the NHS the company achieved: 

   -- continued growth of 5% in turnover; 

   -- a profit of GBP224,122 

   -- invested GBP704,336 in R&D.

“ Our new products are receiving extremely positive feedback. For example, our Best Triage solution launched earlier this year has been extremely successful with 42% of referrals being redirected resulting in time and cost savings. We also now have a full time tendering team and have procured three new NHS tenders in the past 10 months.”

Mandicon (Formerly Mechan Controls) (AQSE: MECP) 250p £5m

HYJun2017 results from the British designer and manufacturer of non contact safety switches for machine guards. “Group turnover compared to the same period last year is down by 7.4% from £1,923,923 to £1,780,465. The Group profit after tax and dividends has increased by 643% for the first half of the year from £160,751 to £1,193,613.” “Trading conditions are better than at this time last year and we are confident that the business will continue to grow organically in the second half of the year. The improved trend in the first half of the year is expected to continue, therefore turnover and profit at the year end should be comfortably ahead of last year, with double digit growth in profit expected.

Earnings per share increased 565% on the same period last year from 10.31 pence per share to 68.54 pence per share.

In the light of this, the Directors are pleased to maintain the interim dividend at 1.173 pence per share.”

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