Morning Song

Dechra Pharmaceuticals (DPH LN) In line trading update & entry to Brazil | Futura Medical (FUM LN) Equity capital raise for MED2002 development | Urban Logistics REIT (SHED LN) Strong NAV performance, and total returns | Zytronic (ZYT LN) Year end update – revenue in line, lower than expected margins

Morning Song

Bagir Group (BAGR LN) Posting of circular and notice of EGM - proposed strategic partnership | Dechra Pharmaceuticals (DPH LN) Sterling progress once again, but one or two clouds on the horizon | Future (FUTR LN) A great summer | Microsaic Systems (MSYS LN) Progressing to plan | Murgitroyd Group (MUR LN) In line trading update, increased dividend, exceptional (historical) item

Morning Song

Craneware (CRW LN) Trading update & contract win | Dechra Pharmaceuticals (DPH LN) In line FY trading update | Eckoh (ECK LN) Contract win through Capita partnership | Miton Group (MGR LN) Strong H1 net inflows, upgrading FY18e EPS by 11% | MySale Group (MYSL LN) Another record year & more potential from platform | Photo-Me International (PHTM LN) On track versus downgraded forecasts. Japan being turned around | Realm Therapeutics (RLM LN) Supportive preclinical data on PR022 vs. tofacitinib in

Morning Song

Dechra Pharmaceuticals (DPH LN) Interims contain no surprises, AST/Le Vet acq now complete | Dialight (DIA LN) Are we nearly there yet? | Eckoh (ECK LN) US secure payments win and new US partnership | GlobalData (DATA LN) Results driven by strong trading | Photo-Me International (PHTM LN) Appointment of CFO | Senior (SNR LN) Solid results and outlook | Sigma Capital Group (SGM LN) REIT placing complete, 140p+/share intrinsic value

Acquisition of Le Vet to drive next leg of growth

The €340m acquisition of AST Farma/Le Vet looks another superlative deal which is set to drive a period of exceptional growth at Dechra. We upgrade our FY19 EPS forecasts by 10% and by a material 18% in FY20 as the full benefits of the deal begin to be realised. The premium rating is well deserved, and we believe this latest deal puts Dechra on a trajectory towards the FTSE 100 index within a few years. We upgrade to Buy, with a new TP of 2550p.

Morning Song

Dechra Pharmaceuticals (DPH LN) Acquisition of Le Vet to drive next leg of growth | Low & Bonar (LWB LN) Significant change | PCI-PAL (PCIP LN) Secure payments offers exciting growth potential | Sigma Capital Group (SGM LN) The PRS REIT launches placing programme to raise up to c.£250m

Morning Song

Dechra Pharmaceuticals (DPH LN) Significant European acquisition | Northern lights The year of the Great Exhibition

Morning Song

1Spatial (SPA LN) US state contract win | Bioquell (BQE LN) Ongoing strength prompts further upgrades | Carr’s Group (CARR LN) Continuing recovery in divisions should help the shares recover | Dechra Pharmaceuticals (DPH LN) Strong, in line H1 update | Gresham Technologies (GHT LN) YE trading update confirms strong progression | IndigoVision Group (IND LN) Pedro Simoes confirmed as new Chief Executive

Strong, in line H1 update

Another strong update from Dechra, leaving the group on track to hit our full year expectations. Growth in North America in particular continues to impress as the group benefits from the increased critical mass from the Putney acquisition, new product registrations and cross-selling opportunities. The more mature European segment remains solid. No change to estimates at this stage, although US tax reform is likely to benefit the bottom line and should lead to useful EPS upgrades at the interims

N+1 Singer - Dechra Pharmaceuticals - AGM statement confirms all in line

Dechra’s AGM update confirms all is in line with growth across all business areas. It is still early in the year, but this is reassuring nonetheless. We have been a bit overly cautious with our estimates and are upgrading our EPS forecasts by ~7-8%, bringing us more in line with consensus. The shares now trading on a Cal'17 P/E of 30x, EV/EBITDA of 20x, falling to 27x/17.5x in Cal’18. The FCF Yield is still 4% however so whilst the shares are certainly not cheap, the valuation is not completely

N+1 Singer - Morning Song 20-10-2017

Dechra Pharmaceuticals (DPH LN) AGM statement confirms all in line | IQE (IQE LN) Unexpected historic US tax bill | PCI-PAL (PCIP LN) Continuing compliance with PCI DSS and new contract win | Renold (RNO LN) Forecasts trimmed to reflect H1 update | SDL (SDL LN) CMD highlights: Technology key to long term competitive advantage

N+1 Singer - T2 Trend spotting - Strategy update

In our second edition of “Trend spotting” we note how in the last three weeks the defensive rotation trend has gathered pace and further evidence has emerged of the “relative fading” in the UK economy. However we now see early signs of the “risk on” trend starting to reassert itself in equity markets and we look at small cap laggards plus European exposure as ways to play this.

N+1 Singer - All creatures great and small - An overview of the animal health sector

Animal Health is a vast market with multiple long-term growth characteristics and opportunities. In this report we have outlined valuations, M&A activity and the key growth drivers in two animal health subsectors: companion animal health and livestock health. Although the commercial positioning of the eight companies covered in this report (Animalcare, Anpario, Benchmark Holdings, CVS Group, Dechra, ECO Animal Health, Genus and Pets at Home) differ significantly, all have exposure to positive ma

Cenkos: Healthcare Sector - Ward Round

Weekly round-up of AIM-listed healthcare news. Venture Life Group, GENinCode, Kromek, Alliance Pharma, Polarean Imaging, Benchmark Holdings, Ondine Biomedical, Verici Dx, Faron Pharmaceuticals, Avacta Group, Abingdon Health, Open Orphan, Belluscura, Hutchmed (China), Oxford Biodynamics

LIBERUM: Futura Medical* - Strategy on track, FM71 data in Sept

Shield Therapeutics - FY results: focus on funding and growing the US

Full-year results were in line with the preliminary guidance issued in early 2022. Feraccru revenues in Europe increased with a 60% increase in volumes and the US commercialisation of Accrufer continues, with broader insurance coverage (100m lives covered). As with many small cap companies, access to growth capital is currently difficult; however, the group has raised a $10m loan from a major shareholder providing a cash runway till end-2022. Our assumption is that further funding comes from deb

Cenkos: OptiBiotix Health Plc -- Final results

OptiBiotix has reported final results for the year to December 2021, with revenues growing 45% to £2.2m and the EBITDA loss increasing to £1.0m, reflecting the increased investment in the business. Post-period end, OptiBiotix has continued to return value to shareholders through the successful spin-out and listing of its ProBiotix Health division. Future growth of the company is supported by commercial agreements with large partners and a substantial pipeline of opportunities through its 2nd gen

SHORE CAPITAL - Warpaint London+ (W7L) - House Stock at 113p

Record H1 as distribution widens and offer resonates

Trading continues to track ahead of expectations, which have been upgraded twice so far YTD. There is clear evidence the growth strategy is bearing fruit. Distribution gains are increasing brand reach both in the UK and overseas. This appears to be an ideal time for its on-trend value-for-money proposition to gain traction, potentially with counter-cyclical characteristics as consumers start trading down. After the recent pull-back, valuation is undemanding for a 3-yr EPS CAGR of 13% with risk p

CMA conclusion; small bolt-on; and in line trading

An update from CVS this morning covering conclusion of the CMA process, a further acquisition and update on trading. The CMA investigation into the acquisition of Quality Pet Care (QPC) is now complete, thereby bringing to an end a 9 month process. As part of the undertaking, CVS yesterday completed the sale of QPC for cash proceeds of c.£9m, implying a c.£12m impairment. Whilst the CMA episode has clearly been a setback, it does not seem to have fundamentally impaired ongoing M&A ambitions give

Morning Note – 30 June 2022

Hybridan Small Cap Feast 30/06/2022

Dish of the day Joiners: Visum Technologies has joined the AQSE Growth Market. The Company's business is to own and operate an "on-ride" video and photographic camera system that it sells and/or licenses to customers (being theme parks, ride manufacturers, souvenir imaging providers, and other leisure operators). Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Compan

Next Gen XPLOR and D2C

Belluscura has announced the launch of the next generation X-PLOR portable oxygen concentrator and expanded distribution through a D2C offering and partnership distribution plan for smaller DMEs.

SHORE CAPITAL - Oxford BioDynamics+ (OBD) - House Stock at 16p

Hybridan Small Cap Feast 20/06/2022

Joiners: No Joiners Today. Leavers: Tungsten Corp and Sensyne Health have both left AIM. Hibernia REIT has left the Main Market. What’s cooking in the IPO kitchen? Visum Technologies seeking admission to The AQSE Growth Market. The Company's business is to own and operate an "on-ride" video and photographic camera system that it sells and/or licenses to customers (being theme parks, ride manufacturers, souvenir imaging providers, and other leisure operators). Due 30 June. LifeSafe Holdings, a fi

Positive AGM statement

The strong momentum from Q4-21 has continued into H1-22, with revenues expected to be up by more than 22% YoY. The outlook remains positive supported by strong industry demand and market share gains in the UK, where the group’s sustainability and affordability credentials are increasingly resonating. Whilst some macro pressures remain, these look to be manageable. We therefore make no change to our forecasts at this stage, but are highly encouraged by current trends and remain optimistic for the

LIBERUM: SourceBio International* - Scaling growth and trading well

Continued growth and margin improvement prompt further upgrades

A positive AGM update confirms strong revenue growth has continued YTD and further margin improvement means management again expect EBITDA to be materially ahead of expectations. The business model is now settled, with additional distributors appointed in the US which should help drive further penetration into the Primary Care market there. China revenues were strong and with no sign yet of any slowdown, despite being cognisant of renewed lockdowns there. Gross margins have remained robust on po