Friday Takeaway—delving a little deeper into UK small caps
This will delve a little deeper on individual companies and focus on non-house stocks under £200m market capitalisation to raise awareness
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.
We add context to announcements from these pioneering, but loss-making companies
IKA Technically Large
TGP Wind Behind Revenue
Ilika 29.5op £53.35m (IKA.L)
Last Reported in Friday Takeaway, 27 June 2025 at 40.0p
Financial Calendar:
Year End April, reported 17 July '25, Interims to end October, reported 22 Jan '26
Three Main Shareholders:
GPIM 12.7%, Charles Schwab, New York 9.3%, Janus Henderson Investors 8.4 %
Key Investment Points:
Commercial Traction, Large Opportunities, Patience needed
The pioneer of solid-state battery (SSB) technology used for transport and healthcare reported first commercial revenues in a commercial order reported on 10 March, but the share price eased. The Company has established the benefits of solid-state batteries over some years, which include high energy, fast charge rates, a long verification and trial cycle, and storage characterised by being safe and non-flammable. The commercialisation journey is progressing in a market estimated to be worth $1.6bn in 2025 and growing to $15.7bn by 2033.
The Interims to October 2025 were announced on 22 January 2026 and although reported significant commercial milestones, the financials remained a millstone. Total revenue was £0.6m compared to £1.0m, reflecting grant funding of £0.6m compared to £0.9m. The EBITDA loss was £3.2m compared to a £1.9m loss. The net cash at September 2025 was £6.9m after a £4.2m fund raise at 33p to advance the commercial status of both SSB product lines. The FY April 2026 revenue is forecast at £1.5m, on Alpha Terminal, which is up from £1.1m, with an EBITDA loss of £5.8m forecast, compared to an EBITDA loss of £5.2m.
A client, Cirtec Medical, a global medical device manufacturer and innovator, initiated a commercial electrode supply arrangement with Ilika to support product manufacturing. This week on 10 March, Ilika fulfilled the initial order of its Stereax M300 which has generated revenue, but disappointingly the amount was not disclosed. Stereax is a miniature SSB for powering medical devices and industrial wireless sensors. The Stereax M300 battery will be used by Cirtec for validation and customer sampling across a wide range of active implantable medical device applications, including powering implanted sensors, neurostimulators, orthopaedic implants, orthodontic wearables and ophthalmology devices. The Company is expecting further orders.
Commercial progress was reported for the Goliath SSB with the successful final commissioning test of its automated assembly line for pilot production. On 11 December, its new 10Ah Goliath battery prototypes were shipped to customers across multiple industries, including automotive companies. The 10Ah cells feature a proprietary oxide coating which offers improved safety, allowing EV manufacturers to design lighter and less expensive battery packs. The technology reduces the pack’s weight by 20% and is estimated to cut manufacturing costs by £2,500 per vehicle. Goliath can be expected to win commercial licensing agreements with these partners.
Hybridan Comment: The shares are not far above the 52-week low of 27p, but the SSB benefits seem compelling. Commercial traction should (eventually) lead to a power surge in revenues. The size of the potential markets remains extremely attractive.
Tekmar Group 9.25p £12.91m (TGP.L)
Reported in Friday Takeaway, 6 June 2025 at 4.8p
Financial Calendar:
Year End September, Reported 9th March '26, Interims to 31 March, reported 26 June '25
Three Main Shareholders:
SCF Partners 31.25%, J O Hambro Capital Management 9.09%, River Global Investors 5.38%
Key Investment Points:
Reorganisation complete, Increasing Scale, New Orders
The provider of asset protection technology and offshore energy services reported finals this week on 9 March for FY September 2025. We believe that these results require some context. Tekmar Group has an extensive global reach with offices, manufacturing facilities, strategic supply partnerships and representation in 18 locations across Europe, Africa, the Middle East, Asia Pacific and North America. To date, Tekmar has supplied more than 12,000 cable protection systems worldwide, supporting the protection of over two-thirds of the world’s installed offshore wind capacity, which is expected to grow at 28% annually to 2029 and then grow by 15% annually up to 2034.
For the FY December 2025, Revenue fell to £28.7m from £32.8m and an Adjusted EBITDA of £0.1m was reported against £1.7m last year. H1 was particularly challenging, with a significantly stronger H2 where gross margins improved to 38% from the 29% in H1. The CEO, Richard Turner, was appointed in September 2024 after the Company reported four years of losses,and during 2025 other key Board appointments were made. The corporate recovery strategy, named Project Aurora, was initiated and has reorganised the company into two divisions: the Asset Protection Technology and Offshore Energy Services. Both divisions serve markets with long-term structural growth drivers.
A range of engineering services and technologies are being provided to support and protect offshore wind farms and other offshore energy assets and marine infrastructure. There is nearly 40 years of experience and knowledge being used to de-risk projects, solve customer's engineering challenges, improve safety and lower project costs. The capabilities include geotechnical design and analysis, simulation and engineering analysis, bespoke equipment design and build, subsea protection technology and subsea stability technology.
On 13 February 2026, a follow-on contract worth more than £4m was won from an established customer for the supply of its 10th Generation Cable Protection System (CPS) and associated ancillaries for a significant offshore windfarm development in Europe. Delivery of the system is scheduled during FY2027, with revenue expected to be recognised across both FY2026 and FY2027.
The positive momentum has continued with a current order book of £40m+ which is the highest reported since Tekmar's admission to AIM in 2018. This visibility over the next 12-24 months provides a platform for growth.
FY September 2026 revenues are forecast to increase 35% to £38.6m on Alpha Terminal, with an EBITDA of £2.9m forecast compared to £0.1m and to near breakeven. The forecast revenue growth reflects the business' success in converting the pipeline into orderbook and then into revenue. We calculate this gives an EV/ EBITDA of 4.2x, which seems low for a Company with a dominate position in a critical and growing niche market.
Hybridan Comment: The shares fell back after a year of restructuring and do not seem to be reflecting the potential recovery and growth in the current year.
Status of this Note and Disclaimer
This document has been provided as a general market commentary and is issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as investment advice; a recommendation; an offer to sell; nor solicitation of any offer to buy any security or other financial instrument. Nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. The information has been provided without taking into account the investment objective, financial situation or needs of any particular person. Recipients should make their own investment decisions based upon their own financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.
As market commentary, this document is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis. It is not subject to any prohibition on dealing ahead of the dissemination of investment research although Hybridan LLP maintains related internal systems and controls in connection with such dealing.
This document should not be relied upon as being an independent or impartial view of the subject matter. The individuals who prepared this document may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result, both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.
This document is not intended to be an invitation or inducement to engage in investment activity. In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are categorised by Hybridan LLP as either a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority's Conduct of Business Sourcebook) (all such persons referred to in (i) and (ii) together being referred to as "relevant persons"). This document must not be acted on or relied up on by persons who are not relevant persons. For the avoidance of doubt, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority's Conduct of Business Sourcebook.
The information contained in this document is based on materials and sources that are believed to be reliable; however, they have not been independently verified and are not guaranteed as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. The information may contain projections or other forward-looking statements regarding future events, targets or expectations. There is no assurance that such events or expectations will be achieved, and actual results may be significantly different from that shown here. The information is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. Any and all opinions expressed are current opinions as of the date appearing on this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein.
References to specific securities, asset classes and financial markets are for illustrative purposes only. Past performance is no guarantee of future results. Information and opinions presented have been obtained or derived from sources which Hybridan LLP reasonably believed to be reliable however no representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information in this document nor should it be relied upon as such.
To the fullest extent permitted by law, none of Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings shall have any liability whatsoever for any losses arising in any way from use of all or any part of the information in this document including, for the avoidance of doubt, direct or indirect or consequential loss or damage (including lost profits).
Neither this document nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom or any other jurisdiction in any part of the world.
Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication.
In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.
Unless otherwise stated, Hybridan LLP owns the intellectual property rights and any other rights in this document. This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.
Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.
This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.
The information contained in this document is based on materials and sources that are believed to be reliable; however, such information has not been independently verified and therefore it is not possible to confirm such information as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.
The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).
Any and all opinions expressed are current as of the date appearing on this face of this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.
This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.
In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as relevant persons). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.
Neither this document, nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.
Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.
Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.
This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.
MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.
Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.
If you would like to unsubscribe, please email enquiries@hybridan.com with “unsubscribe me”.
