Small Cap Breakfast

Logicor—Report in City A.M. that Blackstone is aiming to list warehouse business Logicor, which is valued at around €13bn (£11bn), on the London Stock Exchange in 2017. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.

AIM Breakfast

Venn Life Science Holdings* (VENN.L) | Coral Products (CRU.L) | easyHotel (EZH.L) | Totally (TLY.L) | Snoozebox Holdings (ZZZ.L) | Ebiquity (EBQ.L) | Inspiration Healthcare (IHC.L) | Plastics Capital (PLC.L) | IBEX Global Solutions (IBEX.L) | Armadale Capital (ACP.L)

Further positive snippets on EZH/SSTY/ZZZ

Following up on our commentary in October and November on these three interesting niche plays, we update our thoughts for further recent news flow, including the prelims and strategic update from easyHotel yesterday. We continue to believe that investors should carefully investigate these companies. We note that favourable industry dynamics are coinciding with helpful factors like reinvigorated management teams and proactive business strategies to present compelling reasons to invest.

Morning Song

Microcap - Uncovered gems - Niche Hotels Further positive snippets on EZH/SSTY/ZZZ | IQE PLC (IQE LN) Further progress expected

Update on our recent note on EZH/SSTY/ZZZ

In our Microcap niche hotels edition published on the 12th October, subtitled “three great places for you and your money to stay”, we highlighted easyHotel, Safestay and Snoozebox as interesting sub £50m investments. In this note we update our thoughts post recent meetings, site visits and other news flow for these three companies and the wider sector. Our view remains positive, both on the market backdrop and for the prospects for these innovative niche models and impressive management teams.

Morning Song

ATTRAQT GROUP PLC (ATQT LN) Proposed placing, capital to accelerate further growth | DIGITAL GLOBE SERVICES LTD (DGS LN) Positive AGM Statement; Capital Markets Day | EASYHOTEL PLC (EZH LN) | HALFORDS GROUP (HFD LN) Cycling market intact, reinvestment hits FY17 but capital to be returned | RESTAURANT GROUP PLC (RTN LN) Satisfactory trading update and positive news re supply growth | SAFESTAY PLC (SSTY LN) | SNOOZEBOX HLDGS PLC (ZZZ LN) | Microcap - Uncovered gems - Niche Hotels Update on our r

Microcap – Uncovered gems ‘Niche Hotels Edition’

In our second edition of “Microcap - Uncovered gems” we look at three contrasting and very interesting accommodation plays - easyHotel, Safestay and Snoozebox. We have recently met all three management teams. Not only is the macro-economic background in our view supportive for increased leisure spend and a strong travel/accommodation market, but all three propositions offer something unique and niche both for the consumer and for the investor. At the same time all three stocks are at very intere

Strong performance against tough market conditions

Well positioned for future success

LIBERUM: The Liberum Leisure Digest: NLW increase - pricing power is key

PROGRESSIVE: Vertu Motors: Traction control

Vertu is the fourth largest automotive retailer in the UK, with 188 sales outlets and a track record of cross-cycle growth, principally through businesses it has acquired, funded by equity, debt and most importantly cash generation. Vertu operates across the entire vehicle lifecycle, including new and used vehicle sales, and vehicle servicing, repair and parts. Service and repair is a 40+% gross margin repeating business. With economic headwinds, the transition to electric vehicles, recent overs

Domino's Pizza - Growing the base

Domino’s Pizza Group’s (DOM’s) new CEO has set an ambitious long-term growth target, including an acceleration in its net store opening programme. With better alignment between the company and its franchisees, management believes DOM should be capable of generating improved profit growth, versus that achieved in recent years, and potential higher returns.

Pinewood Technologies (PINE LN) - Driving growth in automotive software

Pinewood’s transition to a pure-play automotive SaaS business is now largely complete. Today we introduce summary forecasts out to FY26 and reiterate the investment case. We see significant opportunity for Pinewood to grow its user base in the UK and internationally whilst generating high EBITDA margins and cash conversion. With a 24.5p special dividend embedded in the current price (payable Q1/Q2), the effective price today is 12.3p. Based on the Group’s FY27 target of £27m EBITDA, we estimate

PROGRESSIVE: Zoo Digital: Recovery underway and a significant contract

Today’s trading statement from ZOO highlights a ramp-up in demand following the end to the industry-wide strikes of last year. ZOO struck a note of caution in its January update regarding the timing of orders. However new productions are starting to translate into a healthy order pipeline, with a good recovery in revenue anticipated in H1 FY25. The update guides to revenue of at least $40m for the year to March 2024, ahead of our estimate at $36.8m. We have improved our adjusted EBITDA loss marg

React Inititation of Coverage

React Group is a well-managed, growing UK services business with a high degree of recurring revenues (c87%).

Marks & Spencer+ (MKS, House Stock at 255p) - 7Y FS HSBC UK tie-up– another brick in the wall

Zeus Top Picks for 2024 - 2023 review and outlook for 2024

On 9 January last year, we set out our ten top stock picks for 2023, for what turned out to be another relatively poor twelve months for UK equities due to two wars, stubbornly high inflation and further tightening of monetary policy. This was even as other major markets, such as the US, largely recovered in the year. In the 2023 calendar year, the AIM All-Share index fell 8.2% and is still 42% off its 2021 high. From the release of our 2023 top picks note, the average total return (assuming div

Judges Scientific+ (JDG, House Stock at 11,600p) - FY23A - solid organic order book

ME Group - Modernising and growing the estate driving growth

During 2023, ME Group commenced the deployment of its next generation photobooths, which are integrated with the group’s newly developed proprietary software, gained market leadership in the Japanese photobooth market with an acquisition, continued to roll out laundry units with existing and new location partners, commenced a share buyback programme and gained entry into the FTSE 250. 2023 was a year of significant strategic and financial progress, with sales up 15%, EPS up 31% and net cash main

Hardman & Co Healthcare Index: 2023 – Capital demands dent performance

The Hardman & Co Healthcare Index (HHI) has been running since 2009. Its main function is to highlight the attractions of life sciences investments over the long term. For the second year running, apart from global economic influences affecting world markets, performance in 2023 was dented by the capital-intensive nature of the sector. The HHI fell 3.7%, to 483.8, underperforming the main London markets – FTSE 100 (+3.8%) and FTSE All-Share (3.8%) but outperforming the FTSE AIM All-Share Index (

B90 Holdings (B90 LN) - Successful transition, outlook unchanged

2023 revenue is expected to be in line with expectations. Adjusted EBITDA loss is expected to be higher than we expected.

Initial Equity Trading Comments - 19 February 2024