Small Cap Feast
The Global Sustainable Farmland Income Trust will invest in a diversified portfolio of operational farmland assets located in major agricultural markets including the United States, Europe, New Zealand, Australia and certain countries within Latin and South America. Raising up to $300m. Due 28 February
ADT HMLH EBQ MPAC STX SXX GOOD RDT AFX
08 Jan 20
FY20 Interim Results
For the six months to 30 September 2019 (H1 FY20) AdEPT Technology Group reported Revenue +26.4%YoY to £30.8m inclusive of acquisitions, with organic growth of +2.5%YoY. Fixed Line Communications comprised 18.5% (£5.7m), -10.7%YoY, whilst Managed Services grew 39.5%YoY to £25.1m inclusive of the acquisition of Advanced Computer Systems UK Ltd. (ACS) to reach 81.5% of revenue; underlying organic growth was 7.9%YoY. EBITDA (adj.) of £6.1m grew 18.3%YoY; a 19.8% margin. The interim dividend was 5.1p/share (H119: 4.9p) +4%YoY. Period-end senior net debt was £31.5m (FY19: £27.1m) 2.6x EBITDA (FY19: 2.5x), with cash at £4.6m.
27 Nov 19
Shore Capital Technology Bytes
AVEVA^ (AVEVA, NR, CNP) – Interim results. Revenue +17% with accelerating recurring revenue, Adjusted EBIT +67%, confident outlook. | CRANEWARE^(CRW, NR, CNP) – Trading update. Results in line with expectations. Confident in strategy. | ADEPT^ (ADT, NR, CNP) – Interim results. Results in line with expectations. Revenue +26%, EBITDA +18%. | TELIT^ (TCM, NR, CNP). Trading update. Adjusted EBITDA and profit in cash for the period and year to date slightly ahead of the Board's expectations.
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12 Nov 19
Small Cap Feast
African Export-Import Bank a supranational financial institution w hose purpose is to facilitate, prom ote and expand intra- and extra- African trade, of its potential intention to publish a registration document, the Bank hereby confirms its intention to proceed with an Initial Public Offering. The GDRs are expected to be admitted to the standard listing segment of the Official List of the FCA and to trading on the Main Market of the LSE. DNEG Limited intends to apply for adm ission of its Shares to the premium listing segment of the Official List of the FCA and to trading on the London Stock Exchange's main market for listed securities. The Offer will be comprised of new Shares to be issued by the Company (to raise expected gross proceeds of £150m). Admission is expected to take place in November 2019.
ADT THR HAYD FAB VNET ODX KRPZ CREO OBC SWG
22 Oct 19
Small Cap Feast
ReAssure Group plc - The Group is a leading closed book life insurance consolidator in the United Kingdom with 4.3m policies, £68.7 billion of assets under administration on a Post-L&G Illustrative Basis. It is considering a premium listing segment of the main market. Voyager AIR The Com pany w ill focus on the acquisition, leasing and m anagement of prim arily widebody aircraft, w ith asset management services to be provided by Amedeo Limited he IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m· Uniphar, a diversified healthcare services business w ith a workforce of over 2,000, is looking to join AIM. Raise TBC, expected mid-July 2019
ADT CPT RENX RGO TMT RDT RGM IPEL 9537 CWR
09 Jul 19
Small Cap Feast
Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m. Loungers plc—the operator of 146 café/bar/restaurants across England and Wales under the Lounge and Cosy Club brands, announces its intention to seek admission on AIM, offer TBC
ADT TMO UEX AURA CHAR GATC ESRE BBSN SOG TPG
03 Apr 19
Small Cap Breakfast
Path Investments (PATH) -RTO of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Offer TBA. Due late Aug. Kropz PLC-Intention to float by the emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa and exploration assets in West Africa.
ADT AUTG RED MUL KWS KMK GKP LID CAS ADL
20 Aug 18
TMT UPDATE - 16.07.18 (ACC.L, BOOM.L, GFIN.L, KBT.L, ADT.L)
Access Intelligence plc* (ACC.L, 5.25p/£26.0m) Interims: Further growth in Vuelio's Annual Contract Value (10.07.18) | Audioboom plc* (BOOM.L, 1.9p/£22.0m) Notice of results and update (13.07.18) | Gfinity plc* (GFIN.L, 13p/£36.5m) Experienced COO appointment and grant of options (12.07.18) | K3 Business Technology plc (KBT.L, 219p/£69.2m) Interims: Substantially overhauled (09.07.18) | AdEPT Telecom plc (ADT.L, 359p/£80.8m) Prelims: Further Public Sector growth (12.07.18)
ADT GFIN KBT ACC BOOM
16 Jul 18
TMT UPDATE - 20.11.17
CAP-XX Limited (CPX.L, 12.75p/£38m) Spire launches Thinline enabled wearable | Tekcapital (TEK.L, 30p/£12.8m) Belluscura Intention to Float announced | AdEPT Telecom Plc (ADT.L, 290p/£65.3m) Interims: Significant transition to Managed Services Castleton Technology plc (CTP.L, 63.5p/£50.0m) Interims: Farming the base
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20 Nov 17
Finding attractive opportunities
Downing Strategic Micro-Cap Investment Trust (DSM), which had its IPO on 9 May 2017, focuses on driving long-term returns from an overlooked area of the market, investing in companies below £150m market capitalisation at the time of investment. The manager (Downing LLP ‘Downing’) takes strategic stakes in companies that it concludes have reached a transformational stage and yet are undervalued. It does so after executing a private equity style due diligence process. Downing is prepared to be constructively active and engaged in its involvement. In our view this differentiates its mandate from the vast majority of other small and micro-cap managers.
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03 Oct 17
Acquisition of education IT specialist Atomwide
For AdEPT the scale and quality of this acquisition is transformational. Atomwide is highly profitable and has the opportunity to extend its successful model outside the London area, particularly for schools and local authorities adopting the Multi Academy Trust (MAT) model. Incorporating the uplift to earnings and maintaining the same level of comparative differential with AdEPT’s AIM telecom peers leads us to raise our Target Price from 360p to 400p. Our rating remains Buy.
03 Aug 17
Small Cap Breakfast
Andes Energia PLC—Sch1 on admission the Company will change its name to Phoenix Global Resources plc will be an Argentinian independent oil & gas exploration and production company, offer TBC but market cap to be £844m and admission date 10 August 2017 Verditek PLC—Sch1 update from holding company in the clean technology sector with subsidiaries operating within what it considers are emergent and fast growing sectors (industrial treatment of solids, air purification, water de-odourisation, zero emission, low cost energy), offer raising £2.75m at 9p with market cap of £16.9m. Admission 10 August 2017 Strix Group PLC—Sch1 from the Company involved with the design, manufacture and supply of kettle safety controls and other components and devices involving water heating and temperature control, steam management and water filtration. Offer raising £190m at 100p with market cap of £190m admission date 8 August 2017. Xpediator Plc—Sch 1 from the holding Company for an integrated freight management business operating in the supply chain logistics and fulfilment sector across the UK and Europe with a strong presence in Central and Eastern Europe. Offer details TBC, expected Admission early August 2017. GetBusy PLC—Sch1 from the holding Company of its subsidiary undertakings, which operates as a document management software business, headquartered in Cambridge, UK and operating across the UK, USA, Australia and New Zealand. Capital to be raised via a rights issues of up to £3m at 28.3p with anticipated market cap of £13.7m, Admission 4 August. Altus Strategies—African focused natural resource Company. Offer TBC. Expected early August. 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 4 August 2017
ADT WGB VGAS PRIM NBI SOG BHRD ORR LGT
02 Aug 17
Small Cap Breakfast
Quiz—Sch 1 from the omni-channel and international own brand in the women's value fast fashion sector. Offer TBA. Expected late July. Last year Quiz posted sales of £87.4m while pre-tax profits grew by 17pc to £5.7m | Arena Events Group -provider of temporary physical structures, seating, ice rinks, furniture and interiors. Raising £60m. Mkt cap £63m. Expected on the Chef’s birthday. 25th July. | Altus Strategies—African focused natural resource Company. Offer TBC. Expected Mid July. | Harvey Nash Group— Provider of professional recruitment and offshore solutions moving to AIM from Main. No capital to be raised. Mkt Cap c. £57.8m. | AnimalCare—RTO of Ecuphar NV, a European animal health company. £30m raise. Ecuphar FY16 rev £68.4m, underlying EBITDA £8.9m. Due 13 July. | NEXUS Infrastructure—£35m vendor sale. Mkt cap £70.5m. Provider of essential infrastructure services to the UK housebuilding and commercial sectors. Expected 11 July. FYSep16 rev £135.7m. | 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. | I3 Energy –Schedule 1 Update. Independent oil and gas company with assets and operations in the UK. Offer TBC, Mid July 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 | Rockpool Acquisitions—Northern Ireland based Company seeking strong NI acquisition with an international outlook. Raising £1.5m at 10p. Due 5 July. | 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— has not been able to complete its initial public offering as announced in its Intention To Float of 3 May 2017. However, in light of positive feedback from potential investors, the Company remains committed to obtaining a London listing and continues to explore its options. | 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.
ADT EOG MERC GDR DTG FLK AGQ HAYD OPP LSAI
13 Jul 17
FY17 Trading Update. Target Price Raised to 360p.
In its April 4 Trading Update for the year to 31 March 2017, AdEPT reported that FY17 EBITDA (underlying) rose 26%YoY, indicative of £7.8m, which is 6% above our outlook of £7.3m. Revenue for the year is reported up 16%, indicative of c£34.0m. We note the dilutive effect on projected FY18 EPS of the exercise of warrants by Barclays Bank plc on March 16, resulting in the issue of 1,204,707 shares and a cash inflow of £129,000.
24 May 17
TMT Update 10.04.17 (BOOM.L, ADT.L, BBSN.L, KWS.L, MPAY.L)
Audioboom (BOOM.L, 2.375p/£17.7m) Additional subscription | AdEPT Telecom (ADT.L, 350p/£78.8m) Positive pre-close | Brave Bison plc (BBSN.L, 1.125p/£6.4m) Meeting with management: Strategy emerging | Keywords Studios plc (KWS.L, 723p/£393.3m) Prelims: Increased cross-selling | Keywords Studios plc (KWS.L, 723p/£393.3m) Prelims: Increased cross-selling |
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10 Apr 17
Small Cap Breakfast
Arix Bioscience — Intention to float on the main market from the global healthcare and life science company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management Eco (Atlantic) Oil & Gas—Schedule One Update. Now expects admission ‘early February’. Ramsdens Holdings –Schedule One from the financial services provider and retailer, operating in the core business segments of foreign currency exchange, pawnbroking loans, precious metals buying and selling and retailing of second hand and new jewellery. Expected admission to AIM 15 Feb raising circa £15.6m. Expected mkt cap £26.5m.
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03 Feb 17
Northland Capital Partners Morning Report
AdEPT (ADT.L) – BUY*: Strong Interims; dividend raised | Botswana Diamonds (BOD.L) – CORP: Orapa and Gope update | Edenville Energy (EDL.L) – CORP: Bulk sampling results | Sunrise Resources (SRES.L) – CORP: Pozzolan Project Expansion
ADT SRES BOD EDL
15 Nov 16
Currency volatility contrasts with equity stability
Exchange rate volatility has been the prime concern for markets over the last few days. Corporate developments have continued and the peak of the company reporting season has passed with the vast majority of results as anticipated. The question now remains that if so-called “hard” Brexit is the way ahead, what this will mean for UK PLC as opposed to International PLC as highlighted by the FTSE 100. The forthcoming Autumn Statement on 23 November will reflect the latest forecasts from the OBR for the economy and public finances. This is just a fortnight after the US Presidential Election 2016.
ADT HUW TRIC TRI AIR CLI
11 Oct 16
Acquisition augments unified communications offering; price target raised to 310p
AdEPT has augmented its unified communications offering with the acquisition of Comms Group U.K. Ltd., a specialist in the Avaya IP Office product suite applicable to smaller–scale SME operations. The acquisition is for an initial cash consideration of £3.5m which will be funded from AdEPT’s revolving debt facility and is immediately earnings-accretive. As AdEPT CEO Ian Fishwick comments: “AdEPT is now in a position to provide a complete unified communications offering which can address the whole of the market, from small customers right through to very large enterprise clients.
10 May 16
Hampshire-based pubs operator and brewer Upham Group plans to raise £12m when it floats on AIM. That is expected to value the company at up to £35m, which suggests that the issue price is likely to be near to the most recent ordinary share issue price of 140p. Upham also raised £5m from a preference share issue last year. The cash will enable Upham to buy more pubs and double the size of its estate to 30 pubs by 2021. Revenues grew from £1.2m in 2012 to £12.2m in 2015. Upham has been lossmaking but it made an EBITDA of £900,000 in 2015, although the depreciation charge is likely to more than halve that figure. A review by Savills has increased the valuation of the pubs by £10.3m to £36.8m. Upham chief executive Chris Phillips was involved in the early days of the setting up of the Slug and Lettuce pub chain. Upham has built up an estate of 15 food-focused pubs in the south of England, including the Wheelwright’s Arms in Havant. These generate the majority of revenues but the South Downs-based brewery has been growing rapidly. The brewery has not been broken out in the intention to float announcement but revenues grew from £113,000 in 2012 to £619,000 in 2014 and it made its first profit in December 2014. Upham has increased its brewing capacity.
ADT NASA TUNE VNH MAYA IHC FISH
09 May 16
Rigid-plastic-products manufacturer and waste-management services provider One51 is holding a general meeting on 21 April to gain the shareholder approvals required to issue shares for a potential flotation on AIM and the Enterprise Securities Market (ESM). In 2014, Ireland-based One51 paid 78p a share in cash for AIM-quoted Straight, which valued the wheeled-bins manufacturer at £10.7m. One51 subsequently bought a controlling stake in Canadian plasticproducts business IPL. A flotation would trigger a deal to swap One51 shares for the one-third of IPL that it does not currently own. The plastics division is the main focus of expansion. One51 is a substantial business. In 2015, revenues grew from €276.5m to €366m, while underlying profit almost doubled from €16.2m to €31.9m. A full 12-month contribution from IPL would have taken revenues to €473.5m and grown profit even more rapidly. Plastic products generate nearly two-thirds of revenues and a greater proportion of profit. Net debt was €120m at the end of 2015 and there is contingent consideration of more than €33m that could become payable. Numis and Davy have been appointed as advisers for the flotation, which is still dependent on market conditions. Although One51 is unlisted there has been regular trading in its shares since 2007 and by the end of March the shares were changing hands at €1.70 each.
ADT PIER MAI 7DIG TRMR MANX KBT TRCS BLV AST
12 Apr 16
Northland Capital Partners Update Note
AdEPT continues its transition from a provider of fixed-line telephony services to an integrated communications services provider. In its April 5th Trading Update AdEPT reported strong performance for the year to March 31st 2016, indicating EBITDA of £6.10m, +33%YoY, ahead of our outlook of £5.9m; reduced net debt at £(6.2)m (previous NCP estimate £(7.0)m; and, notably, an increase in recommended year-end dividend from 3.00p/share to 3.50p/share, ahead of our outlook, to be paid in early October 2016. This takes the proposed full year dividend to 6.50p/share. Based on the medium-term outlook for AdEPT’s integrated communications offering we have raised our price target from 285p to 300p.
05 Apr 16
Politics will exert considerable influence on markets in 2016 with November’s US presidential election, the UK in/out referendum expected over the summer and the escalating tensions in the Middle East. In each situation, the outcome is not assured and this is likely to drive volatility. There is also scope for other surprises. As widely expected, the US Federal Reserve increased rates in December but the Fed’s rate forecasts (a full percentage point increase p.a. to 3.25% at the end of 2018) are more hawkish than market expectations (about 50bps higher for 2016 and 100bps for 2018). Were the Fed to raise rates per its forecasts, either the US and world economies are more buoyant than many believe or the Fed could imperil the recovery through tightening too quickly. The outlook for the US economy is reasonable with the lower oil price and increased employment benefiting consumer spending. The Eurozone countries will also enjoy the lower oil price as importers and growth is anticipated across many member states. The outlook for China and the countries that rely on exporting commodities to China is more mixed, however. Growth in China seems assured but many believe it will fall short of the official target of 6.5%. The first data points of 2016, the official PMI and Caixin China Manufacturing PMI, both came in below consensus and pointed to a further contraction in manufacturing. The news resulted in sharp falls in Chinese indices, triggering the market ‘circuit breakers’ that were created last September, and weakness in other global markets. India looks set to be the best performing large economy in 2016 up 7.8%, a slight improvement on 2015, another oil price beneficiary. The recessions in the other two BRICs countries (Russia and Brazil) look set to continue. Shifting from macro to micro, 2016 should prove the defining year for many AIM-listed resources companies and we expect the shake out that occurred in 2015 will continue as many micro-caps are unable to secure additional funding. Beyond resources, the outlook is more benign with a stable economic backdrop, further M&A activity and fund inflows looking for better returns.
ADT ORR AXM AMO AMP BOD CHL CLON ARK DCP EVG FISH FRM NAUT HDT KRS LTHM MRS MDZ MCC MTFB OCT PET PREM QRT RLH RDI SAV STAR SRES TAVI TECH VAL WRES SALV MARL THR URA ANR URU
06 Jan 16
Northland Capital Morning Report
Divergence looks set to dominate the final month of 2015 and set the tone for 2016. The European Central Bank is widely expected to extend its QE economic stimulus programme and could reduce its overnight deposit rate further in an attempt to boost inflation, and more stimulus could come from Japan and China. Meanwhile the Federal Reserve is now expected to lift rates from historic lows. Higher US rates will impact not only the cost of capital in the US but also emerging markets where growth remains much weaker and leverage high. The move by the ECB is unlikely to have a major impact, however, as it is an extension rather than a new tool and the headlines continue to be dominated by politics rather than financial markets (Isis, the refugee/migrant crisis, tensions between Russia and Turkey etc). The respective moves are likely to further weaken the euro in 2016. The UK sits somewhere in the middle. November’s Autumn Statement saw the Chancellor drop his tax credit reduction plans and benefit from a surprise £27bn improvement in the Office for Budget Responsibility’s five year public finances forecast, based on higher tax revenue and lower debt interest. The general shift away from austerity, the protection of tax credits and increased minimum wage should ensure further economic growth.
ADT LTHM EVG TECH QRT AMO AMP AGQ BOD CHL CLON ARK DCP KRS FISH FRM NAUT HDT MRS MDZ MCC MTFB OCT PET PREM RLH RDI SAV STAR ORR SRES TAVI VAL WRES SALV MARL THR URA URU
02 Dec 15
Interims: Centrix performing well; upgrades to FY16 & FY17
AdEPT’s management has a proven track record in acquiring and integrating businesses in the fragmented communications space and its high levels of automation have enabled it to post sector leading KPIs around revenue per employee and margins consistently. It has successfully expanded into larger customers as well as the Public Sector and Healthcare and there are good growth opportunities through its inclusion in a number of government frameworks. The Centrix acquisition was larger than previous purchases and also broadened AdEPT’s offering into system sales but the integration is proceeding to plan, the first combined sales have been secured and there are additional growth opportunities. We upgrade our P&L and DPS forecasts, maintain our BUY rating and set a new 285p price target.
10 Nov 15
Northland Capital Morning Report
DiamondCorp (DCP.L) – BUY*: NCP update note | Tavistock Investments (TAVI.L) – CORP: Product launch | Petrel Resources (PET.L) – CORP: Interims | Thor Mining (THR.L) – SPECULATIVE BUY*: Final results | Game Account Network (GAME.L): Interims | AdEPT Telecom (ADT.L) – BUY: Death of director
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28 Sep 15
Finals: Another strong set of results
FY15 results marginally better than forecasts (that were upgraded at the interim stage) and April’s pre-close statement. Management has delivered its twelfth consecutive year of increased underlying EBITDA (+13.5% to £4.6m (NCPe: £4.5m)) and FY15 margins have hit another high (+140bps to 20.8%). The acquisition of Centrix, post period end, has increased its proportion of larger customers, expanded its Public Sector presence and reduced its reliance on calls and line rental. The acquisition has also broadened AdEPT’s product offering in complex unified communications, Avaya IP telephony, hosted IP solutions and managed services and brings the potential for larger system sales that would represent upside to our current forecast assumptions. The integration of the business is progressing to plan and forecasts remain unchanged at this stage. Post the acquisition, management still has sufficient firepower to make bolt on earnings’ enhancing acquisitions in what remains a fragmented reseller market. AdEPT has successfully transitioned its business from a traditional fixed line provider and this warrants a higher earnings multiple. We maintain our BUY rating and increase our price target to 230p (from 210p).
07 Jul 15