Small Cap Report (8 Feb) - BYOT, IMTK, VNET, CNS, INL, TRCS, CUP

Friday, Feb 08 2013 by

Byotrol (LON:BYOT) issues a "Commercial & Trading Update" - surely they are the same thing? Semantics aside, there is some good news and some bad. They have secured an agreement with Marks & Spencer for them to use Byotrol sanitisers across its UK stores, which are for surface hygiene. Overall revenue growth in the first 10 months (to date, since they run a 31 March year-end) have grown 15%.

Byotrol (BYOT) 3 yr chart

On the negative side, this is slower growth than expected, due to delays in obtaining European regulatory approvals. It looks to me like this company is near the last chance saloon, as they are resorting to invoice discounting and cost control to take them to anticipated breakeven in H1 of 2013/14 (i.e. towards the end of this calendar year).

I note that the number of shares in issue has risen by a material amount each of the last 6 years, and that the company is permanently loss-making, so it is of no interest to me. A £12m market cap appears very generous, given the company's long-term commercial failure to date. Having turnover of £2m every year, and making a £2m loss every year is not business, it's charity. Expect a continuation of the 3-year down-trend shown in BYOT's price chart, once investors have got over the excitement of the M&S contract.


In a similar vein, I note that Imaginatik (LON:IMTK) shares plunged over 50% yesterday on news of it considering de-Listing its shares, reducing its market cap to just £2.4m (although that's still generous in my view). This is the reason I don't usually invest in sub-£10m market cap companies, or anything small which is trading very badly. The risk of a de-Listing is just too high, especially if they are loss-making, strapped for cash, and there is little liquidity in the shares.

We've seen in several cases how an intention to de-List will at least halve the share price, as many investors get out at any price, not wanting to hold unlisted shares. I have mixed feelings on this. Generally speaking, once a company has Listed, it should remain Listed in all but the most extreme circumstances. However, once it has become blindingly obvious that the business is going nowhere, then…

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Byotrol plc is engaged in the development, patenting and sale of products based on antimicrobial technology. The Company operates through three segments: Professional (including food service, food manufacturing, industrial and health), Consumer and Pet. The Company is focused primarily on the food manufacturing and services sector in the United Kingdom. It offers products under different categories, including boots, cleaning, consumer, facilities management, food manufacturing, food services, grooming, hands, healthcare, odor, personal care, pet, Petface, Pets at Home, professional, sanitizer+, surfaces, Tesco and wipes. Its products under these categories include Actishield, Actizone, anti-viral hand foam, bathroom cleaner, multi-purpose cleaner, pet grooming wipes and stain and odor remover. Its customers are based in the United Kingdom, North America and the Rest of the World. more »

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Imaginatik Plc (Imaginatik) is a United Kingdom-based company, which, along with its subsidiaries, is engaged in the provision of collaborative innovation software and related consultancy services. The Company operates through two segments: Technology and Consultancy. Its innovation software includes Innovation Central, Discovery Central and Results Engine. Its Innovation Analytics is a suite of software tools for its innovation program. Its Innovation Connect allows bidirectional integration between Innovation Central and a range of enterprise collaboration systems. It offers consulting services under two categories: Sustainable Innovation Competence and Innovation Pathways. The Company's Sustainable Innovation Competence provides a program for building competence for innovation by using Imaginatik products and services, such as Innovation Governance service. The Company's Innovation Pathways are service lines that focus on building client's capabilities within an innovation process. more »

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Vianet Group plc is a holding company. The Company is a provider of real time monitoring systems and data management services for the United Kingdom leisure and forecourt sectors. The Company is engaged in the design, product development, sale and rental of fluid monitoring and machine monitoring equipment, together with the provision of data management and related services, both to the leisure and petrol forecourt trade. The Company’s segments include Leisure and Fuel Solutions. Leisure segment consists of design, product development, sale and rental of fluid monitoring and machine monitoring equipment together with the provision of data management and related services. Fuel Solutions consists of wetstock analysis and related services. more »

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  Is Byotrol fundamentally strong or weak? Find out More »

5 Comments on this Article show/hide all

fek47 8th Feb '13 1 of 5

Hi Paul,

On the subject of hard-to-see-why sudden movements, I notice Begbies Traynor (LON:BEG) is down ~8% today....any idea what's behind this?

regards, Francis

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Paul Scott 8th Feb '13 2 of 5

In reply to fek47, post #1

Hi Francis,

Sounds like you've got a glitch in your price feed, as BEG shares are up 0.25p today, showing 34p Bid, 35p Offer as the current live prices (at 10:30am)

Incidentally, I see that on CUP, Peel Hunt have put out a comment supporting the company, saying nothing has changed, but that a particular Blog has caused some damage (that's referring to the TradingResearchPoint article I mentioned in my report today).

Regards, Paul.

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fek47 8th Feb '13 3 of 5

Agree there's a glitch somewhere on Begbies Traynor (LON:BEG) , as shares are indeed trading @ 34-35p. I think the error may be stemming from the recorded value of yesterday's closing price, as Stockopedia (as well as others) are reporting that the price is down 2.8p today, implying a close yesterday of 37-38p (which I don't think was the case).

I guess the systems will refresh and correct themselves overnight!

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Paul Scott 8th Feb '13 4 of 5

In reply to fek47, post #3

Indeed. Sometimes the end of day price will pick up a delayed trade at a different price earlier in the day, which happens to be the last reported trade of the day. I tend to look at real-time prices all the time, so remember the prices of all the shares I monitor in my head! Sad git that I am :-)

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Murakami 8th Feb '13 5 of 5

Hi guys, our prices are all 15 minute delayed but there was a strange lag with Begbies this morning which we picked up from this thread - we're trying to figure out what it was. If anyone spots anything similar, do feel free to raise a support ticket via the Green Help & Feedback button, as it may help us isolate the issue.

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About Paul Scott

Paul Scott

Paul trained as an accountant, then spent 8 years as FD for a ladieswear retail chain.He became a professional small caps investor in 2002 to date.Paul writes a small caps report for on weekday mornings. He joined Fundamental Asset Management Ltd as a research associate in 2014, as part of their Small Cap Value Portfolio team. more »


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