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
17th October 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.
The high cash balances in these two companies are starting to produce stronger earnings growth
GATC Cyber Recruit
OMG Physical Digital
Gattaca 86.5p £27.26m (GATC.L))
Last Reported in Friday Takeway, 7 March 2025 at 84p
Financial Calendar:
Year End July, Reporting 24 October 2025, Interims January, Reported 2 April
Three Main Shareholders
George Materna 25.62%, MMGG Acquisition Ltd 22.81%, Paul Raine 5.65%
Key Investment Points:
Cyber Acquisition, Cash available, Increased Dividend & Share buyback
The specialist staffing business in engineering and technology is reporting Finals to July 2025 on 24 October. The pre-close trading update disclosed that business was marginally above guidance due to improved margins relating to improved productivity. PBT is forecast to have increased to £3.2m compared to £2.9m last year and above the previous £3m forecast. Net Fee Income (NFI) is expected to be 3.2% lower at £38.8m. EPS is expected to be year on year 12.2% higher at 6.62p which we calculate makes a prospective P/E of 13.1x and, assuming the dividend is increased as forecast to 3.31p, the yield will be 3.8%.
On 5 August 2025, Infosec a cyber security recruitment consultancy, was acquired for £2.1m including the deferred consideration £0.6m. It was founded in 2009, based in Cheltenham and works with clients across a variety of sectors providing cyber and information security specialists. The NFI was £2.5m and it had an operating profit of £0.4m for FY to March 2025. The relevance of cyber security has increased over the last few months and Infosec will have a bigger platform for its services with the consolidated customer base across national infrastructure, defence, and other critical sectors.
The business mix is weighted towards contracted staff and SOW (Statement of Work) e.g. outsourcing. This provides resilience and some forward visibility as these typically generate repeatable, predictable fees. The Energy sales team was doubled and will focus on Renewables. The core markets are Infrastructure, Defence, Mobility, and TMT. The mix of markets and the sectors of focus have some resilience to economic forces. The cost base has been rebalanced and operational efficiency improved. The net cash at July 2025 was £15.7m compared to net cash of £16.8m for end January 2025, reflecting a slight extension of the working capita cycle. Markets are challenging, but Gattaca is focused on its core markets, and the Board expects to perform in line with current market expectations for a Profit Before Tax for July FY26 of £4m (taken from Alpha Terminal), which is a 26.7% increase year on year.
Hybridan Comment: The rating seems moderate for a well-funded business in resilient sectors and the Company is able to fund acquisitions.
Oxford Metrics 42.10p £50.68m (OMG.L)
Financial Calendar:
Year End September, Reported 5 December 2024, Interims March, Reported 18 June
Three Main Shareholders:
Charles Stanley 13.56%, Aviva plc 10.95%, Hargreaves Lansdown AM 7.98%
Key Investment Points:
Cash 70% of Market Capitalisation, Acquisitive Earnings growth, New Product Launch
The smart sensing and software Company, originally founded in 1984, stated in a Trading update on 15 October, that its trading for FY September 2025 is in line with expectations. This is more positive than it reads, as the financial reports have been erratic especially since the cash disposal for £52m in May 2022 of Yotta, its infrastructure asset management division.
The business focus is back on smart sensing technology which enables precise high-definition interfaces between the real physical world and the virtual digital world. The improvements in technology mean smart sensing can be applied to an increasing set of problems and markets. The Company helps over 10,000 customers in more than 70 countries, including all the world's top 10 computer games companies and the top 20 universities. The technology has applications in the life sciences, entertainment, engineering, and smart manufacturing industries and is used by international customers such as Red Bull, Imperial College London, Dreamscape Immersive, Industrial Light & Magic, and NASA.
After several years in development, Vicon Markerless went live in March 2025. Vicon Markerless helps Visual Effects teams bring ideas to life with greater speed and ease. Dreamscape Immersive's latest VR experience is already powered by Vicon Markerless. The Markerless system comprises a new markerless motion-tracking camera and new software incorporating advanced computer vision, machine learning and proven algorithms to capture human performance without the need for markers. Commercialisation is progressing well, despite the general challenging headwinds.
The Interims to March 2025 reported on 18 June that the Smart manufacturing division’s revenues increased 194% to £5.3m, which includes the revenue of £3.6m from recently acquired Sempre. The Company also announced the appointment of a dedicated smart manufacturing managing director to drive growth initiatives. Through partnerships with blue-chip manufacturers like Boeing, Ford, and BMW, the smart manufacturing products are used for high precision, automated quality control to ensure “right first time” products. The immediate focus is on integrating the distribution capabilities of Sempre and the vision capabilities of OMG, to capture a greater share of this growth market. The Trading update reported that the division's healthy growth, driven by improved product delivery execution, is building the pipeline into 2026.
The YE cash balance is £37.0m which is after some sizable cash deductions. This included the acquisition consideration of £5.4m for Sempre, now part of the smart manufacturing. There was also a dividend of 3.25p per share amounting to £4.2m. £8.3m was spent on share buybacks with permission to buy up to £10m after extending the authority earlier this year.
Expectations for FY September 2025 are broadly in line with forecasts for revenue of £46.2m, EBIT of £2.3m, EBITDA of £6.33m,a forecast PBT of £3.73m and an EPS of 2.68p, which is a 10% relative reduction. The dividend, however, is expected to be increased 10.5% to 3.59p. We calculate a prospective P/E of 16.5x and a dividend yield of 8%. We calculate that the EV/EBITDA is a lowly 2.5x. The 2026 Forecast on Alpha Terminal shows a 26.7% growth in EPS to 3.28p,with a 21% increase in EBITDA to £7.28m.
Hybridan Comment: The erratic earnings seem to be levelling and there could be reasonable growth in 2026 which is supported by a cash of around 70% of the market capitalisation.
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”.
