Small caps news round-up

Mercia Technologies announced on Friday that its portfolio company nDreams has been appointed by Google as one of the first developers alongside EA Games and Ubisoft to make apps and experiences for mobile virtual reality platform Daydream. The AIM-traded firm, which says it focuses on the creation, funding and scaling of businesses with high growth potential, holds a 40% equity stake in nDreams.

A rapid share price rise over the last few days forced Hydro International to issue a statement on Friday, revealing that it has been approached as a potential acquisition candidate. “The company announces that it has received an approach which may or may not lead to the acquisition of the company by Hanover Investors Management,” the board of the AIM-traded firm said in a statement.

Oil mining company TomCo Energy announced on Friday that it has entered into an agreement with its own CEO, Chris Brown, to provide £0.15m by way of a loan convertible into ordinary shares. The AIM-traded firm said that, in addition, it has agreed to issue warrants to Brown.

John Menzies has made a good start to the year, in line with directors' views, and said both its aviation and distribution divisions are progressing well. In a trading update for the four months to 30 April, the support services group said Menzies Aviation was trading ahead of last year with revenue growth up 7% in constant-currency terms.

China New Energy noted the jump in its share price on Friday and said its prospective partner, Sunbird Bioenergy Africa Limited is edging closer to getting the necessary approvals to begin a project in Zambia. The company said Sunbird has been advised by the Zambia Development Agency that terms of the Investment Promotional and Protection Agreement with regard to the bioethanol project in the Luapula province are expected to be signed shortly.

Digital and print media company Future said its expectations for the full year are unchanged, but its shares fell almost 6% as it reported lower first-half revenues. In the half, group revenue was £30.2m, from £30.8m. The magazine division's portion fell 12% to £17m, which it said reflected the market's overall structural decline. The media division's share rose 15% to £13.2m.

Conviviality sees its full-year EBITDA coming in marginally ahead of market expectations as the company confirmed sales up 137% to about £864m in the 53 weeks to 1 May. Wholesale sales were in line with the prior year and like-for-like retail (LFL) sales generated by its franchise stores rose to -1.3%, from -1.7%. Wine Rack continued to trade well with LFL sales up 3.2%.

Metal Tiger said it was pleased with the latest set of assay results from its Botswana copper belt joint venture with Australia's MOD Resources. The new results come from the T3 prospect.

Advanced imaging company DDD Group announced on Friday that it has entered into an agreement with Arisawa Manufacturing Companyfor a $0.75m secured loan, under the existing authorities granted by its board.The AIM-traded firm said the loan is secured by its US patent for 2D to 3D conversion.

Video surveillance systems producer IndigoVision announced on Friday that Chris Lea had joined its board with immediate effect, and was gearing up to take over as its chief financial officer. The AIM-traded company said Lea will take over from Holly McComb as finance chief from 1 June.

Internet of things company Telit Communications announced on Friday it has entered into an agreement with a major global enterprise application software group (EASG) to license and resell the Telit deviceWise platform. The AIM-traded company said the collaboration between Telit and the unnamed EASG laid the foundation for seamless and secure connection of internet of things (IoT) devices.