Small Cap Wrap: More energy from ALK, Blooming e-sales for BMY, Higher gold recovery for CGNR

Thursday, Jan 24 2013 by
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Small Cap Wrap More energy from ALK Blooming esales for BMY Higher gold recovery for CGNR

Last week saw a slight dip in the FTSE mid week before rising to close the week at 6,163 points (having opened at 6,122). The AIM All share ended the week where it started at 735 points. UK Retail Sales figures were announced on Friday, which fell at a seasonally adjusted 0.1 per cent in December from the month before, whilst US Retail Sales on the other hand in December were up 0.5 per cent, and compared with the prior year were 4.7 per cent up. UK and Eurozone inflation figures both came in at 2.7 per cent. This week has seen President Obama inaugurated for a second term, where he outlined his economic plans, including tackling problems such as the fast growing net-debt (as a result of retirees), crumbling infrastructure and need for education/training. Back in the Eurozone, the difficulties continue, where France for example has seen continuing unemployment problems (with a rate of 10.3 per cent having risen for 19 consecutive months to approach a 15-year high), and which doesn’t look to be helped by an agreement to allow companies to cut work time and pay as demand slows, and extending benefits and raising a tax on employers. The week ahead sees UK December unemployment figures, IMF World Economic Outlook update and UK GDP Q4 first estimate being announced, and the World Economic Forum in Davos also commences. 

ABC Half Year Trading Update, ALK Trading update, ATC Lease Option, BNO agreement with Telefónica and trading update, BMY Interim Management Statement, BGL Prefeasibility Study, CAP Funding Award, CGNR Excellent flotation results, CNS Trading update, CRW Trading update, EKF Trading update, EVO Bid situation, FIP Diurnal enrolls first patient into trial, IDEA Healthcare Contract Wins and New Appointments, INTQ Trading Update, NET trading update, NEW Drilling Update, NYO Drilling and Trading update, PRM Trading Statement, RTG Trading update, SVR Trading update, SQS Trading update, SUN to benefit from £5.05m RGF Grant, SYM Trading Update, TRS Indonesian acquisition, THAL Ecuador Contract, Wipes approval in China 

Abcam (LON:ABC 363p/£720.90m) Abcam, a global leader in the supply of protein research tools, this morning announced a trading update ahead of its results for the six months ended 31 December 2012. The business has performed well despite the continued pressures on centrally funded research budgets. In the US, which is the largest market, the postponement of a federal decision on future levels of research expenditure until the end of next month means that the uncertainty and its impact on revenue growth will continue. Nevertheless Abcam expects to report revenue growth in the period of approximately 28 per cent, or 30 per cent on a constant currency basis, which, taking into account the unaudited revenues of Epitomics and Ascent for the same period last year, represents underlying growth at constant currency of just over 12 per cent. At 31 December 2012 the catalogue comprised 102,288 products, a 25 per cent increase on 31 December 2011. It is particularly pleasing that the catalogue now includes over 4,100 rabbit monoclonal antibodies (RabMAb®), sales of which are encouraging. The integration of the Epitomics business is proceeding well, with almost two-thirds of all RabMAb® catalogue sales now being fulfilled through the Abcam platform. Abcam plans to continue extending the range of RabMAbs® whilst building awareness of their capabilities and their attractiveness to the research community. The positive impact of the addition of the Epitomics business means that gross margins for the six month period are expected to have increased over those reported for the comparable period. Tight cost control remains a feature of the business together with targeted investments aimed at the delivery of future growth. The Company will report its interim results for the period in early March 2013.

Alkane Energy (LON:ALK 28p/£28.28m)  Alkane Energy, the independent gas to power producer, has reported that it expects results for the year ending December 2012 will be in line with market expectations. Trading during the year was encouraging, with output increasing 19 per cent year-on-year and expects to deliver full year electricity output of circa 167GWh (2011: 140GWh). In H2 2012, output increase by 44 per cent to circa 101MWh compared with H2 2011. This increase reflects the contribution of the seven sites acquired following the successful acquisition of Greenpark Energy Ltd. which was completed on 26 April 2012. These sites are producing greater output than originally anticipated. Electricity pricing has shown greater stability over recent months and as at 31 December 2012, approximately 68 per cent of the expected 2013 output is contracted at an average price of GBP54/MWh. In December 2012, Alkane was granted planning permission to extract natural gas at Nooks Farm, Staffordshire to generate electricity using the Company's core gas to power skills. Preparation for drilling has commenced and the drill programme is expected to be completed in the spring of 2013. The Nooks Farm site has estimated contingent resources of 1.5bcf of gas, which is expected to provide 2MW electricity output for up to 15 years.

Atlantic Coal (LON:ATC 0.29p/£11.22m) Atlantic Coal, the opencast coal production and processing company with activities in Pennsylvania, USA, announced that it has exercised its lease option over the fully permitted 410 acre Pott & Bannon anthracite mining property in New Castle Township, Schuylkill County, Pennsylvania. Further details of the lease option agreement are contained in the Company's announcement on 3 January 2012. Atlantic Coal's Managing Director, Steve Best, said: "We intend to pursue an early route to production at the Property and are currently in the process of producing a detailed mine plan and updated Reserve report. We intend to commence operations over the next 12 months and envisage this to be a stand-alone project, benefitting from excellent local infrastructure and robust regional demand. Additionally, with only 25 miles separating Pott & Bannon from our existing Stockton Colliery, where we recently reported record production, we believe that we will be able to take advantage of the potential synergies that exist with our current operations.  Importantly, we also continue with our due diligence process over additional anthracite assets in Pennsylvania, further details of which are contained in the Company's announcements on 15 February 2012 and 29 October 2012. These are in line with our long-term strategy of increasing the Company's reserves and production profile, particularly in the Pennsylvania Anthracitic Belt."

Bango (LON:BGO 211p/£88.06m) The mobile payments and analytics Company announced that it has signed a Global Framework Agreement with Telefónica Digital and also separately announced a general update for the nine month period to 31 December 2012. Over the course of the period Bango continued to expand on its commercial relationships and extend its geographic reach - including into several emerging markets. Following the successful fundraising of £3m in May 2012, Bango executed on its plan to prepare for significant scaling-up in future transaction volumes; Bango made key hires to boost its executive team, invested in its data  centres and operational teams, and continued to innovate in its payment platform and analytics products. Ray Anderson, Chief Executive Officer said: “…We are delighted to have built such client momentum across our marketplace, and are pleased to see it continuing into 2013...At the beginning of 2012 we announced that our focus was on preparing for growth with key new payment customers such as Amazon and Facebook. Additionally, Bango Analytics transaction volumes have continued to grow, and Analytics is seeing interest from new customers, particularly those who want to understand web to App monetization...Bango sees significant opportunities for growth through the roll-out of services with our established partners, as well as in emerging markets, where limited access to credit cards and bank accounts alongside the penetration of non-Apple operating systems benefit carrier-billing. We therefore continue to view the future with confidence.” Bango also announced a Global Mobile Payments Partnership with Telefónica, combining Bango’s frictionless payment experience with Telefónica’s BlueVia Payment APIs (Application Programming Interface). By integrating the single BlueVia billing API into the Bango Payments Platform, app stores will benefit from Bango’s enhanced user experience for mobile devices, which is designed to generate higher payment conversion rates, especially from Wi-Fi-connected and other “off-network” devices.  This is particularly important for the future of mobile payments as more than half of smartphones browsing app stores use Wi-Fi connections. The ability to pay for digital goods and services via a mobile phone bill or prepay credit is a key way for content owners and developers to fully monetize their products. This is especially the case in developing markets, such as Latin America, where penetration of bank accounts and credit cards is very low.

Bloomsbury Publishing (LON:BMY 123.75p/£91.79m) Bloomsbury Publishing last week issued its Interim Management Statement in respect of the period 1 September 2012 to date. In the four months ended 31 December 2012, Group operating profits from title sales were up year on year because of lower relative costs of production in the new digital environment and a lower returns rate as the proportion of online sales increased, in spite of a 2 per cent decrease in title sales.  Key title sales (which excludes Rights & Services) in this period have come from Paul Hollywood’s How to Bake, Hugh Fearnley-Whittingstall’s Three Good Things and J.K.Rowling’s Hogwarts Library.  E-book sales continue to show good momentum growing by 58 per cent year on year, in the four months ended 31 December 2012, particularly in the UK. The recent expansion of the Information division has contributed to an increasing pipeline of Rights & Services contracts. Budgeted income includes £2.7m from contracts scheduled to be completed between now and the year end. In the Academic & Professional division, the sales of Bloomsbury Professional’s new online Tax Planner Service, which launched in October 2012, are ahead of expectations. The division has also just launched a bespoke e-book platform exclusively for the use of PricewaterhouseCoopers staff around the world to download e-book versions of their various Manual of Accounting titles. Bloomsbury continues to expand areas of its business in which a significant amount of content has been amassed through the formation of leading online portals or Knowledge Hubs such as Drama Online, which will be launched in February 2013, and the Churchill Archive, which launched in October 2012. At 31 December 2012 the Group had net cash of £7.7m (31 August 2012: £10.6m). Bloomsbury has been very active acquiring further rights and is pleased to announce that in 2013 it will be publishing the two major potential bestsellers: And the Mountains Echoed by Khaled Hosseini and Elizabeth Gilbert’s novel The Signature of All Things. 

Bullabulling Gold (LON:BGL 6p/£18.15m) Bullabulling Gold, whose primary asset is the wholly owned Bullabulling Gold Project located near Coolgardie in Western Australia, has announced that the preliminary mining schedule and cash cost estimate produced during the previous quarter strongly supports the financial viability of the Bullabulling Gold Project and progression to full feasibility study. The production schedule indicates that 1.95m ounces of gold would be recovered from an initial mine life of just over ten years. The initial estimate of average life of mine cash costs was A$1,104/oz. However in line with previous guidance, cash costs in early years will be materially lower with 650,000 ounces produced in the first three years at an estimated cost of A$884/oz. Pre-production capital costs are expected to be in the range of $297m to $333m, with capital payback achieved in the third year of operations.

Clean Air Power (LON:CAP 7.38p/£13.06m) Clean Air Power, the developer and global leader in Dual-Fuel engine management software for heavy duty vehicles, announced that it has been awarded R&D funding by the Niche Vehicle Network's collaborative research and development programme. The funding award will be shared with project partner Eminox Ltd, a world-class developer and manufacturer of advanced exhaust after-treatment systems. The project will deliver prototype after-treatment packaging for use on Euro 6 compliant Dual-Fuel heavy duty vehicles, expected to be completed in Q1 2013. Packaging the Exhaust after-treatment systems is an important step towards applying their Dual-Fuel technology to Euro 6 vehicles and the Company believes that this award is recognition of the place that Dual-Fuel technology holds in the UK's low-carbon vehicle roadmap.

Conroy Gold and Natural Resources (LON:CGNR 1.4p/£3.79m)* Conroy, the gold exploration and development Company developing a gold mine at Clontibret in Co. Monaghan, Ireland, announced further excellent results of the Metallurgical test work by Goldfields Ltd. These relate to the Flotation test work and the results, which include gold flotation recovery of 90 per cent, are highly positive. The gold flotation recovery, at 90 per cent, is higher than assumed in the Scoping Study. This is most encouraging both technically and financially. The results also indicate an 8 per cent sulphur grade in concentrate whereas in the Scoping Study a grade of 12 per cent had been assumed. The lower sulphur grade in the concentrate is highly advantageous as it will reduce process operating costs. The Company estimates that the effect of these results would increase the IRR from 49.4 per cent (in the Scoping Study) to over 55 per cent and would increase the NPV from $72.3m to over $90m using the base case gold price of $1,372 per ounce as used by Tetra Tech in their Scoping Study and thus substantially increase the overall financial attractiveness of the project. The importance of these tests is that they simulate what might be achieved when the processing plant of the mine is in continuous operation. Steady state conditions were achieved as soon as the fifth and sixth cycles. This is a very satisfactory outcome as the results suggest an efficient and smooth running flotation process. Commenting, Chairman, Professor Richard Conroy said: "Further metallurgical test work is ongoing. The results to date are very positive and fit in with the Company's plan to bring a mine into production in three years' time."

Corero (LON:CNS 24p/£14.07m) The AIM listed network security and business software provider last week announced an update on trading for the year ended 31 December 2012. Group revenue for the full year ended 31 December 2012 is expected to be in the range $20.0m to $21.0m and show solid growth over the previous year (2011: $18.0m).  The Corero Network Security (CNS) business will, in a year of significant internal change and market repositioning, and adverse macroeconomic factors in Europe, report revenue in line with revenue reported in 2011 ($11.0m).  The Corero Business Systems business (CBS) has delivered a strong year-on-year performance in terms of both revenue and profit growth. The Group’s consolidated operating loss before depreciation, amortisation and financing is expected to be in the range $3.0m to $3.5m (2011: profit $0.4m) reflecting the investment in CNS and including a $0.3m unrealised exchange loss on intercompany balances (2011: $0.1m unrealised exchange gain). The Group had a gross cash balance of $4.9m at 31 December 2012 (2011: $6.7m), with borrowings of $6.2m (2011: $5.8m). The CBS division performed very strongly in 2012 and the Group expects this to continue into 2013.  Significant progress has been made in the CNS division with the focus now being to deliver revenue growth, with a differentiated network security product and services offering, through a channel centric sales model. Accordingly, Ashley Stephenson, who joined in March 2012 as Executive Vice President Product Marketing and Strategy, has been appointed Chief Executive Officer of the CNS division and will lead this drive. Corero is committed to continuing to invest in the CNS division, both in terms of sales and marketing, and its First Line of Defense next generation product which the Group envisages will broaden significantly its addressable market. Corero will release preliminary results for the 12 months ended 31 December 2012 at the end of March 2013.

Craneware (LON:CRW 405p/£109.32m) Craneware, the Edinburgh headquartered provider of automated revenue integrity solutions for the US healthcare market, provided a trading update this week for the six months to 31 December 2012, in which it stated that it expected revenue to grow to $20.1m (H1 2012: $18.8m) with further growth at the adjusted EBITDA level of approximately 15 per cent compared to H12012 of $4.65m. The Company stated that these are in line with its own expectations and that the growth in revenue in particular has resulted from the increased levels of sales activity mentioned at the time of final results back in September 2012. Fiscal and regulatory pressures in US hospitals have helped drive interest in the Company’s suite of software solutions.

EKF Diagnostics (LON:EKF 27.75p/£74.11m) EKF Diagnostics, the point-of-care diagnostics business, has reported that in the financial year ending December 2012 unaudited revenues rose around 20 per cent to £26.1m. Adjusted EBITDA for the period is expected to be ahead of previously upgraded market consensus, showing an improvement of nearly double that of the previous year. This outperformance in adjusted EBITDA is a direct result of the Board’s continued sales focus on higher margin products. Cash generation was strong and cash as at 31 December 2012 was £4.2m. Sales of higher margin reagents, particularly Beta-Hydroxybutyrate (BHB) have continued to perform strongly. The second half also benefitted from the growing contribution of HemoPoint H2 instruments and cuvette sales through Alere in the US. In 2012 Alere sold 2,460 HemoPoint H2 instruments into the North American market compared to 608 sold by Stanbio in the previous year, which demonstrates the significant growth opportunity in the US, particularly as sales through Alere only began on 15 April 2012. At the end of 2012, EKF received a further order from the Instituto Mexicano Del Seguro Social, the Mexican Institute of Social Security, for cuvettes for the HemoPoint H2.

Evocutis (LON:EVO 0.8p/£1.4m) Evocutis, which is focused on advanced laboratory and clinical evaluations of skincare products and subject to a formal sale process as defined in the Takeover Code since December 2012, has secured ten new contracts with a total value of £280,000, including early direct sales of its LabSkin(TM) living skin equivalent. The contract values range from £9,000 for early exploratory research to £88,000 for larger scale product development analysis. The contracts, all with well known global consumer healthcare companies, are expected to be delivered over a two to six month period.

Fusion IP (LON:FIP 59p/£42.98m)* The university commercialisation company which turns university research into business announced that Diurnal has successfully enrolled the first patient into the CATCH (Chronocort(R) As Treatment for Congenital Adrenal Hyperplasia) trial. Based in Cardiff, Diurnal is developing a novel approach to drug delivery that will help patients suffering from reduced levels of the key hormone cortisol (hydrocortisone). Chronocort(R) is a modified release therapy that delivers hydrocortisone in a manner that mimics the body's normal circadian rhythm (the body's natural 24 hour hormone cycle). This therapeutic approach has the potential to help patients suffering from diseases due to cortisol deficiency: congenital adrenal hyperplasia and adrenal insufficiency. Each of these diseases requires life-long treatment and Diurnal's novel approach to drug delivery has the potential to significantly improve patients' lives. Chronocort(R) has already received two related Orphan Drug designations from the European Medicines Agency, which affords ten years of market exclusivity after the grant of marketing authorisation in Europe. Fusion's shareholding in Diurnal is 43.1 per cent.

Ideagen (LON:IDEA 24.5p/£29.7m) Ideagen a supplier of compliance based information management, announced that it has signed £280k of new contracts and has appointed two business development professionals within its recently acquired healthcare business, Plumtree Group Limited.  The Company also announced its unaudited interim results for the six months ended 31 October 2012. Revenue increased by 51 per cent to £2.58m (2011: £1.71m). Adjusted PBT increased by 44 per cent to £0.69m (2011: £0.48m) and adjusted diluted EPS increased by 15 per cent to 0.63p (2011: 0.55p). Net cash fell to £1.21m (30 April 2012: £1.39m.) David Hornsby, CEO, commented: “We have made further progress during the first half of this year in terms of operating profit, whilst making considerable investment in our product, sales and technical resources. These results are therefore comfortably in line with the board’s expectations. Furthermore, our increasing recurring revenues, new contract wins within the healthcare sector and the acquisition of Plumtree Group Ltd underpin our confidence in the outlook for the rest of the year.”

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InternetQ (LON:INTQ 217.5p/£75.24m) InternetQ, a provider of mobile marketing and digital entertainment solutions for mobile network operators and brands, issued a trading update for the twelve months ended 31 December 2012. The Board reported that InternetQ has continued to generate strong levels of organic growth during 2012 and they anticipate revenues to be more than €70m, in line with market expectations; representing organic growth of over 45 per cent. Margins have improved in the second half and EBITDA and after tax profitability is therefore expected to be ahead of market expectations for the year to 31 December 2012. The Group's strong performance continues to be driven by its core Mobile Marketing and Mobile Entertainment activities, including InternetQ's social media and entertainment platform, whose revenues are up 90 per cent year on year. Key growth regions remain South East Asia, Africa and Russia where mobile marketing and mobile entertainment services are established as a powerful business development tool. InternetQ maintains a strong balance sheet with cash in excess of €9.5m, providing sufficient capacity for the further significant growth expected in 2013, both in Mobile Marketing and Mobile Entertainment.

Netcall (LON:NET 33.75p/£40.66m) Leading customer engagement software provider this morning gave an update on trading for the six month period ended 31 December 2012. Trading is comfortably in line with management expectations, with order in flows and double digit sales growth maintained. The Serengeti acquisition is now contributing to Group earnings. The Company has a strong cash position, at 31 December 2012 net cash balance increased to £8.2m (31 October 2012: £7.7m) Henrik Bang, CEO commented: “...Along with new customer wins such as North Wales Housing, we are pleased with the level of cross-sales achieved in the period such as the sale of an Eden solution to The Warranty Group, an existing workforce management customer.” Netcall will be announcing interim results for the 6 month period ended 31 December 2012 on 20 February 2013.

New World Oil and Gas (NEW 9.75p /£35m) New World Oil and Gas, the oil and gas exploration and development Company focused on Belize and Denmark, has reported that as of 21 January 2013, the Blue Creek #2A side track had drilled to a Measured Depth of 11,490 feet.  The total depth of the Well is 11,880 feet. The Well is targeting a potentially significant trap in the Hillbank and Y3, the two oil bearing formations seen in the Blue Creek#2 vertical well.  Drilling operations have been halted whenever sections of interest in the targeted Hillbank and Y3 formations have been encountered so that core samples can be taken. As a result, the rate of drilling has been slower than that anticipated in the announcement of 10 January 2013. A further update will be made once the total depth is reached, at which point a decision will be made regarding testing the Well.

Nyota Minerals (LON:NYO 3.55p/£23.46m) Nyota Minerals, the East Africa focused gold exploration and development Company, has reported the final results of the Feeder Zone drilling programme which started in September 2012 at its Tulu Kapi Gold Project in Ethiopia. The drilling has demonstrated the potential for a significant high grade resource that would be developed via an underground mine; new high grade intersections include: 15.04g/t Au over 9.45m, 10.55g/t Au over 13.96m, 5.34g/t Au over 12.25m and 5.24g/t Au over 26m. Initial in-house estimates at the Company suggest an Inferred Resource of 1.1m tonnes at an average grade of 5.4g/t containing 188,000 ounces of gold. However, the Company is being forced to make significant cost cutting measures immediately as expenditure on the drilling and delays to the issuance of a Large Scale Mining Licence mean a shortfall in working capital for the quarter ahead based on its prior budget. The Company is in discussions with a number of potential funding parties and expects to be able to make a further announcement very shortly.

Proteome Sciences (LON:PRM 55.88p/£107.56m) Following the Company's announcement on 31 December 2012, regarding the improved cognitive function demonstrated by Proteome's CK1D compounds, the Board is pleased by the strong interest it has received from pharmaceutical companies, and is actively pushing the CK1D programme forward with the pharmaceutical industry in order to be able to bring the compounds to clinical trials. The Directors are encouraged by the trading prospects for the PS Biomarker Services(TM) division although they are disappointed that the signing of the largest services contract negotiated by the Company to date which had been expected to close at the end of 2012 has been delayed and is now expected to be concluded in Q1 2013. As a result of this delay, there will be an adverse impact on the Company's results for the year ended 31 December 2012 although this will have a correspondingly positive effect on the Company's expectations for FY13. Christopher Pearce, the CEO, has confirmed his willingness to provide additional working capital should it be required, by way of a short term loan of up to £1m. This would be repayable post receipt of the proceeds of the major contract referred to above. The Board expects strong revenue growth across the Company's three main divisions in 2013 and looks to the future with confidence.

ReThink Group (LON:RTG 6.62p/£7.56m) Rethink, a recruitment and consulting company, provided a trading update. In September, the Company announced that full year results were expected to be substantially below market forecasts as a result of declines in permanent revenue in the Recruitment Division. Since then, there was a temporary return to more normal levels, but overall activity remained subdued and significantly below management expectations during Q4 2012. Management now expect the Group to report a loss for the year. With increased investment and action taken throughout H2 2012, the Board is confident that the cost base of the Company is now at an appropriate level, and strong trading in 2013 has resulted in the Board looking cautiously optimistic for the year ahead.

Service Power Technologies (LON:SVR 4.25p/£8.05m) AIM listed market leader in field management provided a trading update for the year to 31 December 2012, in which it stated that revenues for the year are expected to be approximately 17 per cent lower at £11.1m (2011: £13.3m), whilst an EBITDA loss of approximately £1.3m is expected, and loss before tax of approximately £1.8m. A net cash balance of approximately £4.5mis expected at the year end. Interestingly, previously protracted contract negotiations for several significant contracts are now progressing positively and the Company expects to conclude contracts worth over £1m in revenue for 2013 by the end of the month. Earlier in the month, the Company announced the appointment of Marne Martin as Chief Financial Officer (CFO), having previously been CFO of AIM listed Norcon (LON:NCON 21.5p/£10.49m), a UK based telecommunications and defence consulting company, and President at East West Resources Corporation and Digicel Holdings Ltd.

SQS (LON:SQS 249p/£69.45m) Specialist in software quality services, provided a trading update for the year to 31 December 2012 in which the Company stated that it expects revenues to be slightly ahead of consensus forecasts largely as a result of a higher share of contractor service delivery (though this is typically lower margin business). Some of the larger managed services contracts had elected to suspend their extended engagements for a period prior to the end of 2012 in order to contain their expenditures for the year, resulting in approximately EUR1m lower revenue, therefore resulting in a PBT which is expected to be below consensus. Order intake during 2012 was EUR101m against EUR67m during 2011 with an order backlog (revenues still to be delivered) of EUR98m at the year end, whilst on the balance sheet the net debt position at 31 December 2012 was circa EUR7m against EUR12.3m as at 31 December 2011.

Surgical Innovations Group (LON:SUN 6.88p/£27.82m) Surgical Innovations (SI), the designer and manufacturer of innovative medical devices, announced it has formally signed the Regional Growth Fund (RGF) Final Grant Offer Letter, worth up to £5.05m to SI in Government funding. The grant will be used to develop a state of the art research and development facility and clinical training centre, with a reasonable expectation of creating over 300 jobs in the Leeds City region. The RGF is a £2.4bn fund operating across England to be invested over a three year period. The fund supports projects and programmes that lever private sector investment creating economic growth and sustainable employment. It aims particularly to help those areas and communities currently dependent on the public sector to make the transition to sustainable private sector-led growth and prosperity. As part of the agreement SI will commit to £8.7m in capital investment by the end of 2015. The Company also announced that the second batch of 5mm PretzelFlex® was shipped under the CareFusion agreement in December as expected.

Symphony Environmental Technologies (LON:SYM 5p/£6.4m) Symphony Environmental Technologies, the specialist in advanced plastics technologies announced a trading update for the financial year ending 31 December 2012. This was further to the announcement made on 5 December 2012 when it had announced that a trading loss of approximately £1.1m was expected for the financial year. Revenues for the month of December were significantly less than anticipated on 5 December, and as such the trading loss for the year will be materially higher than £1.1m. The Directors believe that the fall in revenues and increased trading loss is principally a result of delays to a number of new large potential territories from which initial d2w(R) additive sales were expected. As such, they regard this as a matter of timing as initial shipments for these new territories are now expected during the first quarter of 2013. Following the statement in December, the Group has received initial orders from three of the new territories with positive indications of interest for future sales, albeit the timing is not yet confirmed. Additionally there was a delay in shipments to some existing territories around the year end period. The Group continues to work hard to establish its global distribution network and leverage changes to legislation in favour of controlled-life plastic technology.

Tarsus (LON:TRS 202p/£192.77m) The international business-to-business media group has agreed to acquire 51 per cent of Indonesian exhibition organiser PT Infrastructure Asia (PTIA) from PT Event Pro International. PTIA currently owns and organises three annual business-to-business exhibitions and one seminar series in Indonesia. Tarsus will pay an initial cash consideration on completion of US$0.5m (approximately £0.3m) for the 51 per cent interest, with estimated total deferred payments of approximately US$2.4m (approximately £1.5m) in aggregate during 2014 and 2015.  Tarsus and PTIA have conditional put and call options at various points in 2016 and 2017 in respect of the outstanding 49 per cent shareholding in PTIA. The total consideration for 100 per cent of PTIA has been capped at US$23m. The acquisition provides Tarsus with an important hub in the fast growing Indonesian exhibition market.  It will enable the Group to develop a range of infrastructure sector exhibitions and provide a platform with which to launch a number of new exhibitions, primarily drawing on Tarsus’s existing brands. The founders and the existing management will continue to run the business post acquisition. The consideration will be met from Tarsus’s existing cash resources. It is expected to be earnings enhancing in the current financial year ending 31 December 2013 and thereafter. For the year ended 31 December 2011, PTIA recorded an unaudited break even profit before tax.

Thalassa Holdings (LON:THAL  56p/£6.64m) Thalassa announced that its subsidiary, WGP Energy Services Ltd., has entered into a contract with SMG Ecuador, the Ecuador business of State Sevmorgeo Company, the Russian geological sea survey company, with an initial value of US$4.175m. The contract involves the provision and operation of Thalassa's Portable Modular Source System (PMSS(TM)) as part of seismic data acquisition surveys being conducted in Ecuador by SMG Ecuador. The surveys are scheduled to commence on 14 February 2013 and last until 15 June 2013. Work on pre-mobilisation is already underway. Thalassa's Chairman, Duncan Soukup, commented: "We are delighted to be working with the SMG Group again, following the successful surveys in the Arctic in 2011 and 2012, on this occasion outside of Europe during a period when we had not budgeted for any work."

Tristel (LON:TSTL 32p/£12.80m)  Tristel, the manufacturer of infection prevention, contamination control and hygiene products, announced that it has received a licence from the Health Department of the People's Republic of China to import and sell the Tristel Wipes System. The system comprises three individual wipes that perform the functions of cleaning the device, disinfecting the device and then rinsing it to remove any chemical residues before use on the next patient, and is able to achieve high-level disinfection in less than two minutes on non-lumened medical devices. Examples of such devices include flexible endoscopes used for ear, nose and throat investigations; intra-cavity ultrasound probes used in urology, obstetrics and gynaecology; instrumentation used in IVF clinics; ultrasound probes that image the heart in cardiology, and in ophthalmology. Also announced was the publication of two articles in peer-reviewed journals that describe the benefits of Tristel products, in The Laryngoscope, the journal of The American Laryngological, Rhinological and Otological Society, and the other being publication of a study undertaken in the Prince of Wales Hospital, Hong Kong.

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This document has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments. The information contained herein is based on materials and sources that we believe to be reliable, however, Hybridan LLP makes no representation or warranty, either express or implied, in relation to the accuracy, completeness or reliability of the information contained herein. Opinions expressed are our current opinions as of the date appearing on this material only. Any opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. None of Hybridan LLP, its affiliates or employees shall have any liability whatsoever for any indirect or consequential loss or damage arising from any use of this document.

In the UK, this report is directed at and is for distribution only to persons who (i) fall within Article 19(1) (persons who have professional experience in matters relating to investments) or Article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc) of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 (as amended) or (ii) are Professional Clients or Eligible Counterparties of Hybridan LLP (all such persons together being referred to as "relevant persons"). This report must not be acted on or relied up on by persons in the UK who are not relevant persons.

Neither this report nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this report comes should inform themselves about, and observe any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of UK or US securities law, or the law of any such other jurisdictions.

Investments in general involve some degree of risk, including the risk of capital loss. The services, securities and investments discussed in this document may not be available to or suitable for all investors. Investors should make their own investment decisions based upon their own financial objectives and financial resources and, if in any doubt, should seek advice from an investment advisor. Past performance is not necessarily a guide to future performance and an investor may not get back the amount originally invested. Where investment is made in currencies other than the investor?s base currency, movements in exchange rates will have an effect on the value, either favourable or unfavourable. Levels and bases for taxation may change. When Hybridan LLP comments on AIM or PLUS Markets shares investors should be aware that because the rules for those markets are less demanding than the Official List of the London Stock Exchange the risks are higher. Furthermore, the marketability of these shares is often restricted.

Hybridan LLP and/or its associated companies may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the partners, directors and employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests. Neither the whole nor any part of this material may be duplicated in any form or by any means. Neither should any of this material be redistributed or disclosed to anyone without the prior consent of Hybridan LLP. Hybridan LLP is Authorised and Regulated by the Financial Services Authority and is a member of the London Stock Exchange.


Hybridan LLP
29 Throgmorton Street, London EC2N 2AT

If you would like to receive other research reports from Hybridan, or would like to unsubscribe, please e- mail research@hybridan.com, title e-mail "research reports" or "unsubscribe me" Hybridan LLP is authorised and regulated by the Financial Services Authority Member of the London Stock Exchange


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About Hybridan

Hybridan is a corporate broker and PLUS markets corporate advisor specialising in fundraising, research and after-market support for small and micro cap companies. We utilise our market knowledge to provide creative financing solutions and strong after-market support. We build long term durable relationships with companies and investors, for the benefit of both. This long term approach, coupled with a high degree of selectivity, yields investments that outperform the market. more »


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