Hybridan Small Cap Wrap: Animalcare’s pet projects, Andes looks higher, Boomerang gets back catalogue

Advanced Computer Software (LON:ASW) (ASW 35.5p / £125.98m)                 

The Company, a leading provider of software and IT services to the UK health, care and business sectors, this week announced its results for the year ended 28 February 2011. The results report on the Company’s second year of trading following the £99m acquisition of COA Solutions in February 2010. Revenue was up 216 per cent. to £95.4m  and adjusted pre-tax profit (before one off restructuring costs, share based payment and amortisation of acquired intangible assets) up 209 per cent. to £21m. The Company also reported positive revenue visibility with approximately 57 per cent. of revenues from recurring maintenance, hosting and managed service contracts and a further 35 per cent. in repeatable business from an installed base of approximately 7,000 customers.

Originally established to consolidate the fragmented primary care software market, the Company now comprises three divisions addressing the needs of both public and private sector organisations. The Health and Care division sells a range of products to the NHS and private sector including patient workflow and case management applications. The Business Solutions division (of which COA Solutions is part) provides accounting, payroll, HR and document management systems to public sector organisations and the private sector. The third division, 365 Managed Services provides services in support of the Company’s products to a wide range of customers. The chief executive commented that the Company: “continues to perform well in a difficult economic climate with turnover underpinned by strong recurring revenues and all divisions reporting high levels of activity. We are confident about our prospects for the current financial year given that future contracted revenues at the yearend were £78m”.

Advanced Medical Solutions (LON:AMS) (AMS 79.25p / £122.63m)       

The global technology company this week provided a trading update in conjunction with its annual general meeting. The Company reported that whilst economic conditions continue to be challenging, the Company is trading in line with current market expectations for the full year 2011 and it remains confident about the long term prospects for the Company.  Feedback from the US market on LiquiBand, its key wound closure product continues to be very positive with end user sales showing strong growth quarter-on-quarter. 

Amur Minerals (LON:AMC) Corporation (AMC 16.12p / £44.81m)*       

Amur yesterday announced today that exploration has been resumed on its Kun-Manie nickel copper sulphide project located in the far east of Russia. Presently, crews are working in the areas of Maly Krumkon, Kubuk and Ikenskoe deposits. Geochemical sampling, ground based geophysical surveys, trenching and drill road construction have all been initiated. In addition, the Company plans to undertake engineering works including verification assaying for metallurgical sample selection, detailed metallurgical test work, resource and reserve updates along with production optimisation of the drilled reserves. Environmental studies will also be initiated. The exploration and engineering work will be focused on the mining licence area that is presently under review by the Ministry of Economic Development. Concurrent with the implementation of the field season, the Company has interviewed various qualified Russian and international engineering and construction companies. From this process, a short list of organisations skilled in base metal extraction and remote project construction will be identified and requested to bid on engineering and construction related activities. The market awaits news of the Mining licence.

Angel Biotech (LON:ABH) (ABH 0.34p / £9.13m)*

AIM listed biopharmaceutical contract manufacturer today noted that following the successful process development and validation work performed by Angel on behalf of Azellon Ltd. under a previously announced contract, Azellon has now been granted approval to run a Phase 1 clinical trial in the UK.  Azellon’s product has received approval from the UK regulatory agency, the MHRA, to commence the world's first clinical trial for the treatment of patients with meniscal tears (injury to cartilage tissues in the knee joint).  The Phase I trial, one of the first in the UK to be approved using stem cells, will treat patients with a cell bandage product seeded with the patient's own, expanded, stem cells. Gordon Sherriff, Chief Operating Officer, said: “Successfully assisting our clients into the clinic is Angel’s core skill. Contracts such as Azellon and ReNeuron utilize Angel’s experience and expertise to expedite their route to clinical.  Each approval for clinical trials received by our clients further boosts Angel’s standing in the market as the premier choice for biotechnology companies wishing to take cell therapy projects into the clinic.” The market awaits news of progress as it adds the extra capacity it needs at the GMP manufacturing facility in Cramlington that it has recently taken a fifteen year lease on.

Angel Mining (LON:ANGM) (ANGM 2.12p / £13.70m)

Angel Mining, a gold and zinc/lead mining company with two active projects in Greenland, is placing shares at 2p per share, further raising £2,182,00 before expenses. This will fund the construction of the cable car connecting the mine entrance to the mine camp at Black Angel zinc/lead mine; expand production at the Nalunaq gold mine; and provide capital for the Company at large. Furthermore, Angel Mining and Socius have agreed to terminate the second tranche of the medium term note programme for £3.0m. Production of gold is now commencing at Nalunaq, with the plant designed to process 200 tonnes of ore per day, and subject to grade, it is expected to build up to expected 2,000 ounces of gold per month. At the current gold price, the Company will be expected to start generating enough capital to finance the development of Black Angel projects, which is expected to see production in early 2013. Black Angel is believed to provide the significant value creation potential for the Company.

Andes Energia (LON:AEN) (AEN 20.75p / £27.68m)  

Andes Energia, the oil and gas, electricity distribution and hydro-electric power Company in Argentina, has been awarded the block CN-01 Nirihuau Sur via a joint venture formed between Andes Energia and Kilwer S.A. With an area covering 4,538km, the block is located in the Northwestern part of the Chubut Province and is known to have oil springs in the Nirihuau basin. The exploration license has been granted for six years, with the first half dedicated to the collection of geochemical samples and the acquisition of over 200 km of 2D seismic. So far, the Company has an interest in 11 licenses covering more than 30,000 km in Argentina. Under the joint venture agreement, Andes holds a 60 per cent interest, with Kilwer and Petrominera Chubut each holding 20per cent. This is the first time the Company has been successfully awarded a license in an open round bid. 

Animalcare (LON:ANCR) Group (ANCR 165p / £33.60m)      

Animalcare Group, the leading supplier of veterinary medicines, announced the addition of new products to their analgesia and anesthesia range. Following recent successful launches of several new products in Europe, Sedastart and Sedastop have joined the ranks of licensed pharmaceuticals after having received approval from Veterinary Medicines Directorate and the Irish Medicines Board on 27^th April 2011. With an £1.0m net turnover for each of the target markets, Sedastart is an injection that’s used to calm an animal prior to a minor operation while Sedastop is administered after the operation to reverse Sedastart’s effects. Stephen Wildridge, CEO of Animalcare expects to increase the range of effective therapies at competitive prices by launching at least two more products before the end of the year.

Asterand (LON:ATD) (ATD 11.5p / £13.67m)    

Main list leading provider of human tissue and cell-based services to pharmaceutical and biotechnology companies engaged in drug discovery research last week announced the exclusive licensing on a worldwide basis from Capsant Neurotechnologies Ltd. and the introduction of isletOrganDOT, a novel 3-D cell based assay platform for evaluating therapeutic compounds for diabetes. Dr. Thomas Mander, Vice President Sales and Marketing at Asterand noted: "Cell based models for diabetes research have relied on cell lines or intact rodent and human isolated islets, but both models have limitations. Asterand's isletOrganDOT system offers advancements in functionality, throughput and study design, allowing us to provide our clients with relevant human data on the effects of test compounds in a rapid and reproducible manner." Asterand's UK service division offers exemplary scientific expertise in human tissue research. Through its PhaseZERO platform the Company provides pharmaceutical and biotechnology companies with compound evaluation, target and biomarker validation services.

Atlantic Coal (LON:ATC) (ATC 0.5p / £19.15m)

Atlantic Coal, open cast coal production and processing company with activities in Pennsylvania, USA, generated $10,720,103 in revenues over the last year, compared to $9,048,214 in 2009. A new excavator  on site during the second quarter of the year resulted in increased production levels, while a second hydraulic excavator has been ordered which is expected to become operational in the first quarter of 2012. In conjunction with increased production capacity at Stockton Colliery, the Company mined 207,873 tons of run-of mine coal during 2010, with hopes to increase to 300,000 tons in 2011. Furthermore, the feed rate at the washing plant more than doubled from 2009 with an average of 1,000 tons per shift. With £12.3m raised (before expenses) in the first quarter of 2011, the Company has a healthy cash position and can now  evaluate potential acquisition targets in line with its strategy to become a regional consolidator with a view to increase its resource base.

 Boomerang Plus (LON:BOOM) (BOOM 55.5p / £4.95m)

Boomerang Plus, an AIM listed media group, acquired the trade and certain assets and liabilities of Oxford Scientific Limited for a cash consideration of £516,250. OSF is a London based BAFTA & Emmy award winning Production Company focused on history and science programs. The acquisition will help Boomerang deliver its diversification strategy both in terms of its expanding geographic presence and customer base as OSF caters to audiences in the States, U.K, and Australia. It also strengthens the resource base as it provides the Company access to an extensive back catalogue of programming and experience in exploiting programs globally. Following the acquisition of Indus Films in October 2009, this move further solidifies the Company’s position in the Factual genre. Huw Davis, CEO of Boomerang Plus also observes that: “the acquisition allows us to build on the strong performance of our Advertiser Funded Programming business and the organic growth seen in Network productions and positions the Company for long term growth.”

Caza (LON:CAZA) Oil & Gas (CAZA 21.5p / £33.11m)

Caza Oil & Gas, the U.S. focused exploration, appraisal, development and production Company, reported that its ongoing operations are progressing on, or ahead of, schedule. On the Windham property in Upton County, Texas, the Caza 158 #3 is the fourth well drilled and completed on this property. The Caza 158#1, 158#2, and 162#1 wells are all producing oil and natural gas whilst being in various stages in their respective fracture simulation programs. At the Bongo property in Wharton County, Texas, there was a discovery of presence of natural gas in the Frio formation. With the completion of remedial operations on the O.B. Ranch #1 well, the well is producing average daily rates of 92 barrels of oil, 674 thousand cubic feet of natural gas and 37 barrels of water, in line with the Company’s expectations. In the San Jacinto Property in Midland County, Texas, an acreage of 480 acres with five unproven undeveloped locations, the Company is targeting the Wolfberry, Strawn and Devonian formations, which produce oil in the vicinity.  The progress and revenues generated by these projects contribute to the Company’s pursuit of maintaining a balanced strategy of developing both production and reserve base, and add to the strategy of building further shareholder value.

Ebiquity (LON:EBQ) (EBQ 90.5p / £53.24m)

Ebiquity, which provides a range of business critical data, analysis and consultancy services to advertisers, media owners and PR professionals around the world, has announced the acquisition of a 50.1 per cent stake in its Russian media practice partner, The Joined Up Media Company. A consideration of £1.2m is being offered, with an upfront of £356,000 and criteria related payments spread across three years making up the balance. Ebiquity has an existing partner arrangement in Russia and the surrounding areas - with Joined Up Media already representing close to 50 per cent of the Russian media auditing market - the acquisition will offer significant cross selling opportunities to Ebiquity and its current portfolio of services. The new acquisition helps to further the reach of the Company’s Analytics division and follows the £10m (up to) acquisition last month of Echo Research, which is a well reputed analysis, media measurement and stakeholder research specialist with offices in London, New York, Paris and Singapore.

Falkland Oil & Gas (FOGL 61.25p / £126.93m)              

The Company announced that the Leiv Eiriksson rig is expected to arrive in the Falkland Islands in Q4 and also that it expects to commence drilling in Q1 2012. They have made “significant” progress in establishing a drilling team, to be managed by Dave MacKay, a deepwater drilling specialist who previously worked for BHP Billiton for 12 years. On 24^th May, the Executive Council of the Falkland Islands approved the withdrawal of BHP Billiton from the northern license area and transfer of operatorship to Falkland Oil. They also approved a six month extension of Phase 1 of the northern license area to June 15^th 2012, from December 15^th 2011. The latest site survey programme has now been completed; a total of 5 site surveys were carried out on the Inflexible, Vinson, Scotia, Hero and Loligo prospects. FOGL is in early-stage discussions with several parties who have expressed an interest in participating in an exploration drilling programme. The Company doesn’t anticipate concluding any farmout agreement until later this year. 

Goldplat (LON:GDP) (GDP 11p / £18.38m)

The gold producer continues to “make excellent progress” at Kilimapesa Gold, announcing that the first phase of its drilling programme to seek to upgrade the resource towards a JORC compliant 0.5moz gold. The Title Deed, required for the issuing of the Mining Lease, has been issued with final documentation now delivered to the Commissioner of Mines and Geology in Kenya. Four key exploration targets have been identified for diamond drilling based on existing data and artisanal activity. The continuity of quartz veins at the Vim/Rutha target has been confirmed by recent geophysical IP surveys, laterally continuous over 300-400m. Three parallel quartz veins have been mapped on surface beyond the Vim/Rutha target over a 5km strike. Red Ray correlates positively to Kilimapesa Adit B, rock chip samples of up to 10g/t Au. Phase One (of two) of a drilling programme has commenced – a 28 shallow hole drilling programme over 1,120m focusing on the prospective Vim/Rutha and Red Ray target areas, 2km south of Kilimapesa Hill.

Herencia Resources (LON:HER) (HER 2.7p / £34.05m)*      

Last month the Northern Chilean miner reported that a possible new target area had been identified at Patricia where two drill holes had intersected a narrow base metal sulphide mineralisation.Herencia now confirms that it has intersected a broad 20 metre mineralised zone which includes a high grade core of six metres grading 5.9 per cent zinc, 2.6 per cent lead and 144 g/t silver.  This new vein appears to be up to 750 metres in strike length with the deepest hole indicating a depth of mineralisation to 225 metres below surface.

The new vein may provide Herencia with another target to expand the resource base at the Patricia discovery.

Hydrodec (LON:HYR) (HYR 7.25p / £29.86m)

Hydrodec, the oil recycling specialist, provided a trading update at its AGM last week in which it stated that it had continued to perform steadily since its 2010 annual results and that it expects the current trend of steadily increasing volumes to continue into the second half of the year. Demand for its SUPERfine products has remained strong in the U.S. and Australia, whilst it is continuing to increase exports from its U.S. plant as the Company's products gain market acceptance- the tight supply market has not impacted the prices of finished product and gross margins. A number of agreements have also been signed since the results. HydroDec has signed a three-year agreement with a major U.S. utility, which will supply used transformer oil for re-refining at its Canton facility, accounting for 5 per cent of current annual feedstock requirements. The Company has also signed a heads-of-terms for its first joint venture plant in Japan and a more formal agreement is expected to be signed shortly with the first site expected to be commissioned in the second half of 2012. 

Leni Gas (LON:LGO) & Oil (LGO 2.8p / £25.74m)         

The Company announced resumption of production from the Eugene Island-184 (EI-184) platform in the Gulf of Mexico. Operations were resumed safely on 3^rd June following the transfer of operatorship to Marlin Energy LLP (as announced in late May). All (5) previously active wells were returned to production and operational reporting to the Joint Venture partners has now been resumed. During the initial five day ramp up period, gross physical production has averaged 1,199 mcfpd and 402 bopd (609 boepd). Once downtime is accounted for, this equates to an average daily rate of approximately 922 boepd. The Company holds a 7.25 per cent working interest in the EI-184 field. Early indications are that production has been re-established at a level higher than before shut down but stabilised rates are not yet available and some flush production after a 60 day shut-in period would be expected.

Monitise (LON:MONI) (MONI 27.75p / £195.05m)

Monitise, which provides end-to-end solutions that enable banks and their customers to undertake banking transactions via mobile phones, announced a new agreement with Visa which is expected to bring in revenues in excess of $10m in the first three years. Just last week that the Company announced that it had launched its first mobile money service in India with a range of smart phone and Java apps via Standard Chartered, and this new deal demonstrates the regular contracts being awarded to the Company. The agreement will enable Visa to offer a mobile service to its current account holders which replicates the features of traditional visa payments. Alastair Lukies, Chief Executive of Monitise, said: "Visa is the benchmark for trusted payments innovation on a global scale and it is a huge honour for Monitise to be playing our part in their mobile strategy. Mobile Money is an industry that will have a big societal impact as the 5 billion mobile phone users around the world discover new ways to bank, pay, trade and shop. This agreement validates Monitise's strategy of becoming the leading trusted enabler in the space and cements our role in this ever growing ecosystem".

Pan African Resources (LON:PAF) (PAF 10.75p / £155.23m) 

The Africa-focused precious metals producer announced the results of a drilling programme on the Bramber tailings dam at Barberton Mines (Pty) Ltd: the indicated mineral resource declared of 148koz (3.13Mt at 1.47g/t in situ) independently verified at a cut off grade of 1.5g/t. The initial metallurgical test work indicates recoveries of 45 to 55 per cent. The ‘Order of Magnitude’ study estimates capital for the project for a Carbon-in-Leach plant at ZAR120m (approx. £11m) to treat 1.2Mt of tailings per annum at Barberton Mines for a period of approximately three years. An additional 9Mt of dump material is currently being investigated that could increase the life of the project from 3 to 10 years. If viable, this project could increase production at Barberton by another 20koz per annum over the life of the project. The feasibility study on the project will be completed by Q2 of the 2011/12 financial year. The Company is encouraged by these results which show that Barberton is developing into a “significant” stand alone gold project with the chance of not only increasing the current production profile but also increasing the operating margin and reducing unit costs.

Plant Impact (LON:PIM) (PIM 27.5p / £13.81m)

Last week AIM listed agricultural play announced that it has entered into an exclusive licence and distribution agreement with Engage Agro Corporation, a Canadian based crop development, registration and marketing company covering INCA crop enhancement technology. The Agreement grants Engage the right to market and sell Plant Impact's INCA crop enhancement technology in Canada on an exclusive basis for an initial period of five years and contains customary price and sales targets which, if not met, enable Plant Impact to terminate the Agreement. Engage has been working with INCA for over two years and the board of Plant Impact believe that the Agreement will lead to the development of several new technologies for the Canadian market.

Red Hot Media International (RHM 62.5p / £22.67m)

The advertising and media promotion business operating in the Malaysian, China and Hong Kong markets this week announced its results for the year ended 31 December 2011. Total revenue increased by 69 per cent.to RM 44.3m (£8.9m) and profit before tax was RM 9.2m ( £1.83m) representing a 95 per cent. increase. Income from the advertising businesses grew 79 per cent. and represents 95 per cent. of total revenue of the Company. The Malaysian business led the growth with 86 per cent. increase while the China and Hong Kong markets grew by 70 per cent. The growth has been supported by AxChange, the Company’s innovative distribution based business model under which the Company enters into a contract to draw down various lines of inventory and then, as the inventory is sold through RedHot’s distribution network, the proceeds from the sales are used to purchase media space for the same client.   This model frees up working capital for clients and assists new entrants into the Malaysian and Chinese markets (where capital controls are still in place) in selling their products. 

The high rate of growth impacted working capital and the company raised RM3.5m during the year through the issue of preference shares  leaving cash balances available for use at the yearend of RM3.2m (£0.8m). The Company reported that the outlook for the current year shows promising growth as it begins to witness a recovery in the media and marketing sectors. It is also experiencing an upturn in advertising expenditure, especially in the Malaysian market where consumer spending on white goods and electrical products, two of its key market segments, is on the rise.    

Serabi Mining (LON:SRB) (SRB 30.25p / £19.35m)*

AIM listed Brazilian focused gold exploration Company yesterday announced further  results from its ongoing Phase  1 discovery drilling campaign at its 100 per cent owned Jardim do Ouro project in the  Tapajos region.  These results covering a total of seven further drill holes include the first three holes into the Currutela target area, as well as completion of the Piaui target and Panhandle targets. Drilling has commenced at the Currutela target area, with assay results now received for three of the holes completed to date on this target. Drilling has intersected multiple zones of hydrothermally altered granite. These alteration zones appear to be very similar to those hosting mineralization at the Palito deposit which lies along strike some two kilometres to the northwest of the Currutela target. The Company is also pleased to report it has also increased drilling capacity with a second contracted drill rig now operational at site.  This increase will accelerate  the  current  8,100m target  testing  drilling  programme  on the nine integrated  geophysical/geological targets  derived from  the 2008 airborne VTEM survey  and  2010 ground  geophysical  surveys. The Phase 1 discovery drilling programme is scheduled to complete before the end of Q3 2011. 

Synchronica (LON:SYNC) (SYNC 22p / £21.56m)

The AIM listed Company, which develops and provides mobile device management and synchronisation solutions, announced that it has signed an expansion order with a tier-one mobile operator group targeting Latin America. This is a group-wide deal which will see the use of Synchronica Mobile Gateway 6 across all of its Latin American subsidiaries and sees Synchronica strengthening its presence across the Latin American mobile market- Synchronica's contracts with operators in the region cover more than nine out of every 10 mobile users in Mexico and Argentina and five out of every 10 mobile users in Brazil. Specifically, monthly fees will be doubled which will significantly increase the recurring revenue received per active user per month- the increased charges are partly due to the increased services offered by Synchronica and could also in part be due to the new features offered by the updated platform, which was introduced in February 2011. Carsten Brinkschulte, Chief Executive of Synchronica, said: "This is the second contract expansion signed with a multi-national operator group in Latin America. It demonstrates Synchronica's ability to provide additional services to customers gained via the acquisition of Colbria's IM business in 2010 and increase the revenue generated from these contracts. We are confident that the addition of push email and synchronization to the operator group's messaging portfolio will enrich the product offering and we look forward to a successful roll-out."

UBC Media (LON:UBC) (UBC 2.5p / £4.47m) 

UBC Media Group, the multimedia content and services Company, ended its fiscal year with a reduced overhead base, rising revenues in new areas of the business, a healthy cash balance of £4.3m and no debt or long-term liabilities. Digital video now comprises 11 per cent of group turnover, while software and video revenues increased by 22 per cent and 61 per cent respectively. Additionally, the Company will be supplying apps to Astral Media’s (Canada’s largest radio group) 83 radio stations in the next six months. In a challenging year within the traditional media space, the Company successfully developed the content businesses into digital video, moved the interactive business into mobile apps and removed its legacy digital radio liabilities. In spite of this, Simon Cole, Chief Executive, stressed that for the future, the Company will need to grow in the environment that it is in and use the balance sheet “wisely”.

Valirx (LON:VAL) (VAL 0.7p / £7.26m)*

AIM listed life science Company with a focus on cancer diagnostics and therapeutics for personalised medicine, announced last week that it has agreed to vary certain terms of the sale and purchase agreement between Singapore Volition Pte. Limited and ValiRx in relation to the sale of  its former subsidiary ValiBIO SA and the sublicence of its rights to hypergenomics technology that was associated with the sale. In consideration of a commitment by Volition to ValiRx to issue a further US$510,000 of ordinary shares in Volition (so now taking the aggregate value to US$1.11m), ValiRx has agreed to transfer its rights to a patent application for certain diagnostic applications for an endometriosis device; and novate the rights of a patent licence concerning hypergenomics technology to Volition, the rights were originally provided to Volition by way of a sublicence. The issue of US$1.11m worth of shares by Volition will take place on the earlier to occur of an initial public offering by Volition, or 7 October 2011 at a valuation by reference to the Volition IPO price or, if there has been no IPO, to the average subscription price between September 2010 and 7 October 2011. Dr Satu Vainikka, CEO of ValiRx, commented: "We are pleased to have been able to amend the agreements with Volition deriving substantive value from the transfer of a patent application, that is outside of our core technologies. ValiRx continues to work closely in association with Volition and I am pleased to see our stake and investment in Volition increase further to both companies' mutual advantage." It is good to see the two Companies working so well together and we look forward to the fruits of their mutual development work. 

Victoria Oil & Gas (VAL 4.47p / £95.61m)

Victoria Oil & Gas, an oil and gas exploration and production company with assets in Cameroon and the FSU, has mobilised important pipeline and civil contractors. The Company has hired Austin Maritime, a local civil engineering contractor, to manage the pipeline jointing, installation, testing and commissioning procedures. The Company has also started work on production trees and baseline calliper logs of the wells to prepare for the commissioning of the wells, all of which will also be completed by the end of June. Victoria currently has 11 gas sales agreements (GSA’s) signed/executed with another 10 GSAs contractually agreed subject to legal due diligence and final approval. In all contracts, gas supplies are priced at £16 per million British thermal units or $96 per barrel of oil equivalent. Logbaba’s current proved and probable reserves of 212bn cubic feet of gas (bcf) (35.3m barrels of oil equivalent) and the Company expects gas sales of 8m standard cubic feet per day (mmscf/d) in the first year of operations rising to 44 mmscf/d by the end of 2014. 212 Bcf is sufficient to supply an average consumption of 30 mmscf/d for the next 20 years. Additionally, the Company also revised internal economic forecasts for the field, which highlighted improved post-tax NPV figures.