Welcome to our new product “Friday Takeaway”
This will delve a little deeper on individual companies and focus on non-house stocks under £200m market capitalisation to help raise awareness
Friday Takeaway from UK Small Caps
This will delve a little deeper on individual companies and focus on non-house stocks under £200m market capitalisation to help raise awareness
13th June 2025
Alphabetically arranged
Share prices and market capitalisations taken from Alpha Terminal from the current price on the day of publication.
Top three shareholders are taken from the websites of the companies that we are writing about, unless there is a more up to date TR-1 notification RNS announcement.
Increased distribution channels could lead to accelerated profits growth
CPX Power Pack
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Cap-XX Limited 0.17p £9.82m (CPX.L)
Last Reported in Friday Takeway, 14 February at 0.13p
Financial Calendar:
Year End June, Reported November 2024, Interims to December, Interims reported February 2025
Top Three Shareholders:
Dr. Graham Cooley 9.92%, Schurter AG 4.96%, Patrick Elliott 0.81%
Key Investment Points:
Distribution Deals, New Products, Cost saving initiatives lead to robust cash
CapXX’s high-power density and high energy storage capacity superconductors are used in portable and small-scale electronic devices, as well as in larger applications such as automotive and renewable energy. This is a $1bn market and forecast to grow at 18% per annum between 2023 and 2030. The recent Trading Update reported on the restructuring progress over the last five months to May 2o25. CapXX’s cash remained robust at AUD$4.2m (£2m) compared to AUD$5m as a result of cost-saving initiatives, an ongoing emphasis on efficient operational performance and a slowing rate of cash use.
A significant milestone has been passed as the first batch of its co-branded supercapacitor products have been shipped to Schurter 's warehouse. This strategic partnership extends the Company's product reach into global industrial and electronics markets. Several other distribution agreements have been signed with additional agreements in negotiation. The increasing distribution strengthens CAP-XX's global presence aimed at delivering advanced energy storage solutions across various industries, including automotive, IoT, industrial automation, and consumer electronics.
Investment in R&D continues with an additional two international patents building upon the technologies developed around the new polymer binder. The new range is break-through technology that allows a supercapacitor to be stable at high temperatures so better able to penetrate many high-volume applications. We believe that the value adding inflection point of cash flow breakeven at the historic run-rate may be, in our opinion, covered by existing cash and helped by the R&D Tax credit likely to be received from the Australian Government.
Hybridan Comment: The growing distribution channels and new products should drive significant sales growth.
Digitalbox 4.30p £5.07m (DBOX.L)
Financial Calendar:
Year End December, Finals reported 25 March 2025, Interims to June, Interims reported September 2024
Top Three Shareholders:
Storia Credit Holdings (Europe) 19.73%, Downing (London) 16.95%, James Carter & Jim Douglas with 9.3% each
Key Investment Points:
Target Market Increasing, Operating Leverage, Acquisitions
The acquisitive mobile-first digital media business owns websites such as Entertainment Daily, The Daily Mash, The Poke, The Tab and TV Guide. On 9 June this week Digitalbox completed another add-on acquisition, paying £20ok for social media business The Life Network which has 5.6m Facebook and 357,000 Instagram followers. Before this deal, the Year End December 2024 revenues, reported in March, grew by 31% to £3.65m with 21m followers and growing, with a 90% increase as the TV Guide followers and Daily Mash subscription revenues doubled.
A Strategic Review was completed on 28 January 2025 as the Board recognised the need to scale up despite market volatility and the challenges of platform dynamics. The agility to adapt in real time while maintaining strong demand for its popular inventory is expected to drive growth in the open market for targeted advertising. The projected global Digital Mobile Advertising spend is set to increase to by 10% per annum to £542bn by 2027.
The review concluded that there is an opportunity to leverage its proven operating model and launch new compelling content sites. Digitalbox will also target complementary acquisitions and revenue diversification. The net cash improved to £2m before the latest acquisition and, as it is cashflow positive having generated £0.56m during 2024, if no further acquisitions are made, the cash could be higher at Year End December 2026. To the Year End December 2024, EBITDA increased 31x to £424k from the prior year’s depressed levels, which included a £6.4m impairment charge. Administration costs were £3.3m, up from £2.6m and gross profit margins were 85%, up from 78%. Research & Development is set to increase as emerging technology and AI are adapted to improve margins.
Hybridan Comment: Given the increasing revenue and gross margins, in our opinion an EV/EBITDA of 7x is not demanding
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