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
14th November 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.
These technology companies are nearer to the point of accelerated income
CYAN Last Mile
TENG AI Sir
Cyanconnode Holdings 6.10p £21.89m (CYAN.L)
Last Reported in Friday Takeway, 21 March 2025 at 12.75p
Financial Calendar:
Year End March, Reported 23 July, Interims June, Reported 8 November 2024
Top Three Shareholders:
Axia Investments Ltd 13.014%, Premier Miton Group 9.53%, William David Johns-Powell (NED) 5.467%
Key Investment Points:
Visibility of long-term Contracts, Reorganised Management, Near a 52-week low
Cyanconnode provides IoT communication and smart metering solutions from a comprehensive technology portfolio. This includes narrowband RF mesh, advanced cellular modules, and hybrid communication platforms; delivering scalable and cost-effective connectivity for smart energy and infrastructure applications. The projects are predominately in India, but also Southeast Asia, the Middle East, and Europe. Projects typically become 5-year renewal contracts based on the meters connected and cash flow generated from this embedded infrastructure is attractive.
The Indian Government is committed to nationwide smart metering, and its meter deployments are increasing, but in fits and starts. The pipeline of opportunities in India remains substantial, standing at approximately 104.9m smart meters, representing an estimated value of £9.8bn, which have been sanctioned, but are yet to be awarded.
The interim trading update to September 2025 reported that the Group's contracted order book is robust at around £157m following the landmark £70m Goa contract in April 2025. This was the first Indian contract as an Advanced Metering Infrastructure Service Provider (AMISP) allowing the Company to bid directly for further smart metering contracts which can be subcontracted to a major operator. When this Goa fully funded contract starts, it alone could drive revenues for the next two years.
Revenue in the six months to September 2025 is expected to have increased by 31% to £7.4m with 5m units shipped in India, leaving a backlog of 9m, according to a Trading Statement on 22 October. The uncertainty of the pace of the deployment, timing of large projects, and the absence of a transparent AMISP framework agreement has caused the Company to withdraw earnings guidance including losses and cash in hand.
The AMISP Indian market is expected to be worth around £186m, providing a substantial near-term pipeline to support continued revenue growth. When submitting bids for AMISP contracts, refundable deposits are required. Cyanconnode recently borrowed a further $5.25m from an Abu Dhabi based global investment group on similar terms to previous loans made which together total $15m. The 60-month 7% coupon loans can be converted at a price to be determined based on fair market value and subject to agreement between the Company and the Lender. These loans should lead to further AMISP multi-year, multi-dollar contracts and become a major contributor to revenues.
The Finals to March 2025 reported a transforming Indian smart metering market. During the year, Björn Lindblom was appointed as Non-Executive Chairman, with John Cronin moving to role of Group CEO and Chairman in India, with the strategic appointment of Indian base managers to the senior leadership team.
Revenues, however, were 24% lower at £14.2m, due to the lower rate of deployment which is outside of the Company's control. The gross margin increased to 35% in FY March 2025 from 20%, due to newer, lower cost products. The target gross margin is 30-37% in the first two years of each project, increasing thereafter. The loss before tax decreased to £3.7m from a loss of £4.2m and the cash collected from customers decreased to £14.2m in FY25 from £16.9m in FY24, reflecting the reduced revenues.
Hybridan Comment: The current low valuation based on multiple of sales of 1.5x reflects business model uncertainty, not the pipeline, so this value would be highly sensitive to winning further contracts and increased revenue transparency. This could then be extrapolated over the addressable market opportunity to produce transformational earnings growth.
Ten Lifestyle Group 58.50p £56.24m (TENG.L)
Last Reported in Friday Takeway, 8 August 2025 at 60.25p
Financial Calendar:
Year End August, reported 12 November, Interims to February, reported 23 April
Top Three Shareholders:
Mr Alexander Cheatle (Group CEO and Co-Founder) 11.5%, Lombard Odier Investment Managers 11.31%, Canaccord Genuity Wealth Management 10.8%
Key Investment Points:
Muti-year contracts, AI assisted services, Scalable earnings
The finals for the 12 months to August 2025 were reported this week and showed moderate revenue growth of 4.5% to £65.7m. There was however a 10.6% increase in EBITDA to £14.6m and the PBT increased by 5x to £2.9m to give an EPS of 2.9p. In September 2024, £5.9m was raised at 63p and the Y/E net cash is £9.3m, which is after repaying a £4.5m loan. The EV/EBITDA is a lowly 3.1x and the P/E is 19x.
The AI enhanced concierge technology platform provides services for its corporate client partners to attract and retain customers. These corporate partnerships have been developed over the years and there are over 50 corporate clients including HSBC, Bank of America, and Westpac. The Active Members at the FY was 375k and have continued to grow to 387k showing continuing engagement with the proposition. The partner contracts are multiyear and based on the number of users.
In August, several new products were launched onto the platform to improve the customer experience and engagement: Ten's AI-powered member assistant, Tali; Ten Guardian Ten PX Personalised Experience and Ten VoC Voice of the Customer. These platforms all enable personalised, data-driven engagement and real-time feedback. The Ten Box Office and Ten Digital Dining are highly scalable additional content which can be hyper-personalised to selected offerings. For example, Digital Dining is integrated with OpenTable, to improve restaurant digital booking and AI assisted recommendations, so members can search and book over 60,000 restaurants and be offered superior access and benefits. Guardian is a proprietary AI tool that reviews all member-facing communications, including emails, quotes, and research, in real time and retrospectively. It assesses tone, accuracy, and brand alignment at scale.
The Group secured and launched an Extra-Large contract in the USA, expanded a Medium contract to a Large in the Americas, and won three Medium contracts in AMEA and Europe, alongside key renewals including a Large European contract with higher fees for a digitally led service.
Trading for FY 2026 was reported to be on track to deliver market expectations on revenue growth and improved profitability. It would appear that expectations on Alpha Terminal are for turnover of £73m, EBITDA of £15.5m, a 98% increase in PBT to £5.74m and an EPS of 5.35p.
Hybridan Comment: The additional scalable AI Services are engaging active members and seem set to accelerate earnings.
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