Animalcare (LON:ANCR) Group (ANCR) [129p/£26.73 million]
One of the leading suppliers of veterinary medicines announced the launch of a new product for problems related to canine ageing. Vitofyllin will be available in tablet form and acts as a central nervous system stimulant for older dogs suffering from dullness, poor demeanour and unwillingness to exercise. This forms part of a collaboration between Animalcare and three of its European partners, and has enhanced the company's in-house expertise having been contract synthesised. The regulatory procedure was also the first time a bioequivalence bio-waiver had been successfully applied for and obtained in Europe. The market in the UK and Ireland is said to be worth £1.5 million per annum.
BlueStar SecuTech (BSST) [6p/£4.4 million]
BlueStar SecuTech, a supplier of digital video surveillance solutions in China, has announced that it has received an order from the Bank of Beijing, worth approximately ¥5 million (£0.5 million). The contract is for the provision of networked surveillance services and solutions for the second part of a project with Bank of Beijing. The company has also won a contract with Shanghai Pudong Development Bank. The order, worth approximately ¥1.7 million (£0.2 million), will help build a network command center in the Chengdu branch.
Craneware (LON:CRW) (CRW) [425p/£114.72 million]
The Edinburgh-headquartered provider of automated revenue integrity solutions for the US healthcare market announced final results for the year to 31 December 2012. Revenue was up 8% to $41.1 million (£25.5 million; 2011: $38.1 million) whilst adjusted pre-tax profit increased by 16% to $10.8 million (2011: $9.3 million). Cash at year end continued at a strong level of $28.8 million (2011: $24.2 million), and a dividend of 5.7p is to be paid taking the total dividend for the period to 10.5p, some 19% higher than the year before (2011: 8.8p).
The company's progress continues to be closely linked with the navigation of the US healthcare market, which is seeing healthcare facilities across the country looking for efficiency gains across their revenue generating areas. Whilst 75-80% of revenues currently come from the Annuity SAAS model, which sees licence fees invoiced over a five-year contract, the balance of revenues continue to come from professional services implementation and a pure SAAS model with monthly invoicing and revenue recognition, as the company seeks to phase these out one can expect to see continuing benefits to the company. All in, a sound set of results for the company.
DDD (LON:DDD) [24p/£32.21 million]
The 3D solutions company announced an upgraded version of the Yabazam 3D video app for LG 3D Smart TVs, which streams 3D programmes on a video on demand (VOD) basis. Yabazam allow consumers to rent original 3D movies and TV shows. It brings the complete library of 3D content available at Yabazam.com to LG 3D Smart TVs, with a wide range of 3D content, including independently produced 3D movies, documentaries, live action comedies and animated features from producers around the world.
This announcement follows the half-year trading update provided in July, in which the company stated that it expected first half revenues to have increased by around 74% to around $4 million, benefiting from growing demand for its 2D to 3D conversion software.
EKF Diagnostics Holdings (LON:EKF) [28.25p/£71.72 million]
EKF announced a trading update for the six months ended 30 June 2012. Adjusted EBITDA for the period is anticipated to exceed market expectations, due to the company's decision to increase its sales focus on its higher margin products, in particular Beta-Hydroxybutyrate (BHB) liquid reagents.
Cash at 30 June 2012 was £3.2 million, with a net cash position of around £0.6 million. Unaudited revenues for the period are expected to be approximately £12.65 million; this was lower than expected due to a combination of a conscious decision to delay the launch of Quo-Lab, a low cost HbA1c analyser for developing markets, as well as a delay in the launch of HemoPoint H2 instruments and cuvettes through Alere in the US. Both of these products are now launched and with strong initial sales.
Even though the HemoPoint H2 was only officially launched by Alere in the North American market in mid-April they have already ordered in excess of the guaranteed first year minimum of 1,400 analysers in the last 4 months alone. In addition to this Quo-Lab was launched later than expected in early July and the company has already sold over 290 units with 70,000 accompanying tests ordered for these units demonstrating the opportunity for this product in emerging markets and the strong consumer interest.
Galileo Resources (GLR) [38.5p/£31.98 million]
The emerging African rare earth exploration company announced with reference to the heads of agreement with Rare Earth International (REI) (announced 25 July 2012), that it has completed the due diligence review on the three rare earth projects in Zambia, Mozambique and Spain to its satisfaction in all respects except for the confirmation of the tenure, over the Nkwomba Hills rare earth deposit in Zambia.
The licence administration centre of the Zambian Mines Development Department is currently not releasing tenure licence documents for due diligence, or any other purpose, as the Ministry until recently had a moratorium in place on all licences held on record in order to clear various irregularities that have been "piling up for years".
However the Galileo board has a recent written opinion from the ministry stating that the Nkwomba Licence is the sole valid mining right over the entire area, including the Nkombwa Hills rare earth deposit. The company's board, having given due regard to the due diligence completed and the aforementioned official opinion on tenure, has conditionally approved the issue and allotment to REI of 5.25 million Galileo ordinary shares, subject to the licence centre releasing the title documentation and confirmation that Nkombwa Licence is the sole valid mining right. A further announcement will be made as and when the shares are issued.
Ilika (LON:IKA) [54p/£24.6 million]
llika the advanced clean-tech materials discovery company, has reported that it continues to mature its sales pipeline for the current financial year and its forecasts remain broadly in line with current management expectations. The recent appointment of a business development director in Germany has created a number of partnering opportunities, which it expects to develop from the next quarter.
Progress has also been made in securing further support from the Carbon Trust for the fuel cell catalyst material and a further announcement is expected in the next few weeks. The project for the development of thin film battery technology for man-portable batteries is well underway and initial data is expected to be released in the first quarter of 2013.
Imperial Innovations (LON:IVO) Group (IVO) [317.5p/£316.39 million]
Imperial Innovations Group has invested £1.25 million in Acunu, a data storage specialist, as part of a £3.6 million funding round. Acunu has developed a database infrastructure and analytics software package targeting the fast-growing Big Data market, which is significantly cheaper and more effectively than competitors. Customers can also search these databases for useful information and analyse it instantly. This is an early-stage, developing market that analysts expect to grow rapidly over the next two to five years.
Acunu has gained some early customer traction in the telecoms and manufacturing sectors. Acunu will use the funds raised of £6.6 million to further develop its product market positioning and build its sales team. The company recently hired a new CEO and president, Chris Gomersall, formerly vice-president EMEA at ServiceNow and Polyserve, and former CEO of Ipsoteck, to lead further growth of the business.
Jim Levi assesses Imperial Innovations' prospects in: Shares to buy, hold and sell.
Plastics Capital (PLA) [66.5p/£18.32 million]
The group, which is engaged in the manufacture of plastic products focused on proprietary products for niche markets, provided a trading update to the market for the financial year to date confirming that the company is trading broadly in line with market expectations. Eight new accounts have been secured during the year, which in conjunction with new contracts from existing customers have the potential to provide some £2 million of additional annual revenue over the next two to three years. Contribution from new business has offset lower sales to existing customers, particularly in the industrial division, which mainly serves the capital goods markets.
ReNeuron (RENE) [3.35p/£26 million]
The clinical-stage stem cell business reported a trading update in which was reiterated that it has submitted an application to the UK regulatory authority to commence a multi-site phase II clinical trial to examine the efficacy of its ReN001 stem cell therapy in patients disabled by an ischaemic stroke. The trial is designed to recruit from a well-defined population of patients between two and four months after their stroke, which the company and its clinical collaborators currently believe will be the optimum treatment window for the therapy. The phase II application has been filed a number of months ahead of plan. This is to allow sufficient time for the regulatory and ethical review process as the remaining patients are dosed and followed up in the ongoing phase I PISCES clinical trial with ReN001 over the coming months.
Sareum Holdings (SAR) [1.45p/£21.46 million]*
The specialist cancer drug discovery business, announced that it has entered into a £4 million standby equity distribution agreement (SEDA) with YA Global Master SPV, an investment fund managed by Yorkville Advisors LLC. The SEDA is intended to provide a flexible source of future funding to the company to support its ongoing drug research activities as well as reassurance to Sareum's potential commercial partners that it has access to other funds, in addition to any anticipated licence deal income. Subject to its terms, the £4 million SEDA facility can be used entirely at the discretion of the company. Under the terms of the SEDA, Sareum may draw down funds over a period of up to three years in exchange for the issue of new ordinary shares in the company. On 19 July 2012, the company issued a trading update stating that it expects to conclude a commercial deal with at least one of its research programmes by the end of the calendar year, and the company stands by that statement.
Summit (LON:SUMM) [2.38p/£8.41 million]*
The UK drug discovery company announced its interims, a strategic review that gives more focus, and a deal. In its interim results for the six months ended 31 July 2012, Summit stated that its cash position at 31 July 2012 was £4.8 million (31 July 2011: £3.7 million), and the company made an operating loss of £1.7 million and a net loss for of £2.2 million (31 July 2011: £1.4 million).
The company has entered an exciting and important period in its development with two clinical-stage assets expected to reach important technical milestones over the coming months. In its strategy update, Summit said that it will focus on the development of its drug programmes targeting Duchenne muscular dystrophy (DMD) and C. difficile infections. The change in strategy will place greater emphasis on clinical development and curtail internal discovery stage research that is undertaken by approximately half of the company's workforce. SMT C1100 is a potential first-in-class utrophin upregulator currently in a phase I clinical trial. Results are expected to be reported by the end of 2012.
The company is developing SMT 19969 as a novel, differentiated antibiotic that combines high potency with exceptional selectivity for this bacterium. The greater focus will support the development of SMT 19969 which is expected to enter clinical trials by the end of 2012. Summit remains enthusiastic about the potential of Seglins and in particular the OGA inhibitor programme. The OGA programme will continue to progress as planned through to an important technical milestone after which the company will evaluate its options for taking this forward.
Summit announced that it has entered a technology licence agreement with Bristol-Myers Squibb (BMY) under which Bristol-Myers Squibb will use Summit's proprietary Seglin™ technology to identify and develop drug candidates for up to 10 targets across multiple therapeutic areas. Glyn Edwards, chief executive officer of Summit said: "This agreement with Bristol-Myers Squibb further reinforces our strategy as we seek alternative ways to realise the value of our Seglin technology while we concentrate our resources on advancing our core Duchenne muscular dystrophy and C. difficile programmes."
Under the terms of the agreement, Bristol-Myers Squibb will be responsible for the discovery stage research and will have the exclusive right to develop and commercialise any Seglin products that are identified. Summit will receive a $100,000 technology access fee and is eligible for research, development and regulatory milestones of up to $30 million per product, plus royalties on worldwide sales of products arising from the technology.
Xenetic Biosciences (LPX) [6.12p/£24.28 million]
Xenetic announced the appointment to its scientific advisory board of Dr Alexander Gabibov, a world-leading scientist in the field of biocatalysis. Gabibov graduated from Moscow State University in 1977 specialising in chemical enzymology, and currently holds several senior positions in the biochemistry sphere in both Russia and France.
Since 1997 he has been head of the Laboratory of Biocatalysis at the Shemyakin & Ovchinnikov Institute of Bioorganic Chemistry at the RAS, and in 2000 became professor of cell biology at the Moscow State University. In 2003 he became an associate of the Russian Academy of Sciences then in 2008 was appointed president of the Russian Biochemical and Molecular Biology Society.
In 2009 Gabibov took up the role of foreign correspondent at the National Academy of Pharmacy in France while, more recently, in 2012 he has been nominated as head of the department of industrial pharmacology at the Lomonosov Moscow State University.
*A corporate client of Hybridan LLP
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