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
22nd August 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.
Recently reported results from these companies may not have been pitch-perfect, but the investment narratives are progressing
BATM Bridges to Cross
CNSL Feed the World
PEB Ribbles never come back
BATM Advanced Communications Ltd 16.p £69.9m (BVC.L)
Last Reported in Friday Takeway, 21 March 2025 at 14.7p
Financial Calendar:
Year End December, Last Reported 17 March, Interims to June, Last Reported 18 August
Three Main Shareholders:
Lombard Odier Investment Managers 29.77%, Dr. Zvi Marom (NED and Founder) 22.17%, Hargreaves Lansdown 4.35%
Key Investment Points:
Rebranded, Cash Chest for M&A, Impact Technology
The transitioning and rebranded provider of advanced network infrastructure, cybersecurity, and diagnostic technologies reported interims to end June on the 18 August. The business is concentrating on three core businesses: BATM Networks, BATM Cyber and BATM Diagnostics. Substantial operational changes have been implemented, and non-core activities are being sold with three disposals made in the first half of 2025. Further disposals are in process and if the mainly loss-making eco-med activities are not sold by the end of 2025, they are likely to be closed. In H1 non-core activities accounted for 46.3% of revenue. The cash and short-term investments in June 2025 were $27.0m compared to $31.6m at FY December 2024.
Interim revenue increased to $60.4m from $58.9m, with a reducing operating profit of $2m from $3.6m, and PBT of $1.6m, down from $3.0m (which was adjusted to exclude expenses related to corporate activity). The gross margin in all three of its ongoing core divisions improved which supports the strategy.
The profits of BATM Cyber, 8.5% of total revenues, reduced to $1m from $2.5m, but passed a milestone with the delivery of the first units of the encryption platform for the commercial market. Losses reduced in BATM Networks, 11% of total revenues, to $1.1m, and revenue increased from both carrier ethernet and Edgility. Revenues are increasing as new channel partners are onboarded within BATM Networks and a proof of concept is currently underway with an end customer. Operating profit increased at BATM Diagnostics, 34% of total revenues, to $1m from $0.3m due to higher sales of proprietary and third-party diagnostic products. BATM Diagnostics entered the Italian market with MDXlab winning several projects, and several multi-year reagent and consumable agreements. The Company is exploring potential opportunities to add capability to its core activities through M&A. The forecast profit for December 2025 is for £3m, which would give an EPS of 0.33p, on a prospective P/E of 45x. We calculate the EBITDA/EV for December 2025 would be 6x.
Hybridan Comment: The shares are little changed since our previous comment. The interims did however report passing some milestones on the pathway to the new business, although there are still a few bridges to be crossed.
Cambridge Nutritional Sciences 3.25p £7.73m (CNSL.L)
Last Reported in Friday Takeway, 29 November 2025 at 3.35p
Financial Calendar:
Year End March, Last Reported 19 August, Interims to September, Last Reported 23 November 2024
Top Three Shareholders:
Vidacos Nominees Ltd 12.9%, The Bank of New York (Nominees) Ltd 11.71%, Hargreaves Lansdown 7.94% and 7.62%
Key Investment Points:
New Team, Increasing Production, Fully Funded Sales Growth
The specialist medical diagnostics Company focused on delivering a personalised approach to nutrition for better health reported results for the FY March 2025. Revenue, excluding the DHSC settlement, declined 14.8% to £8.3m, with a business focus on key products to existing markets. The gross profit margin increased to 65.3% from 61.9% and excluding the DHSC £1.83m income and other exceptionals, the operating loss was £395k (FY March 2024: £535k). Including DHSC and other exceptionals, the operating profit was £1.4m compared to a £0.77m loss in FY March 2024, with a 310% increase in PBT to £1.6m.
The size of the world market for food sensitivity testing is estimated at $33.6bn and projected to reach $58.0bn by 2030, as gut health and welfare is an increasing area of wellness focus. The Group has a functional range of tests for gut health diagnostics for food sensitivity which identify the root cause of gut health issues. Its diagnostic technology FoodPrint accounts for 79% of sales and is a highly sensitive and accurate CE Marked laboratory test that detects IgG food-specific antibodies (allowing the control of infection) for over 200 foods. It is used by healthcare professionals to identify lifestyle and dietary changes for clients that can significantly improve their long-term health and wellbeing.
The new leadership over the last 12 months have reorganised internal structures to improve quality and capacity. Investment was made in CNSLabs' productivity with new machines and processes that have increased efficiency. The operational focus is shifting to sales and marketing with Europe and the US specifically targeted. In October 2024, a new Global Sales Director was appointed to develop relationships and contacts. This will however take time as the sales process is complex with a long cycle between contact and contract. The cycle could be accelerated by appointing main distributor partnerships.
The forecast for the current year to March 2026 is cautious for moderate revenue growth and, assuming a continued improvement in margins, getting closer to break-even. Although net cash was 10% lower at £4.9m at FY March 2025, this is sufficient funding for the newish management to deliver, ‘a high level of growth’, for 2026 and beyond.
Hybridan Comment: The shares are virtually unchanged since our last comment, although the finals reported improving sales growth prospects.
Pebble Beach Systems Group 15p £18.67m (PEB.L)
Last Reported in Friday Takeway, 27 June 2025 at 9p
Financial Calendar:
Year End December, Last Reported 23 April, Interims to June, Last Reported 20 August
Top Three Shareholders:
Kestrel Partners LLP 24.71%, Hargreaves Lansdown Nominees Ltd 8.00%, Hawk Investment Holdings Ltd 7.89%,
Key Investment Points:
Growing Pipeline, Debt reducing, Scalable Platform
The software business specialising in playout automation and integrated channel solutions for the broadcast and streaming markets reported Interims to June 2025. Revenue improved 12% to £5.9m, with an increased EBITDA to £2m compared to £1.4m in the Interims to June 2024 and PBT grew to £0.5m from £0.3m giving an EPS of 0.8p compared to 0.3p. The gross profit margins remained steady at 76%. This is a result of the strategic actions, including a reduction in overheads saving £2m, while the cash generated from operating activities (before interest and exceptional items) improved 28% to £1.8m with net debt reducing to £3.4m from £4.8m.
Pebble Playout Solution takes multi-media video files or live feeds to transmit with frame precision for linear schedules and live event programming. Customers include Fox News, CNBC, IMG, TV Globo, as well as major streaming services, particularly those carrying live content. American revenue grew by 125% to £1.7m because of the increasing demand for live streaming. The Group has commissioned systems in more than 70 countries and there are around 2,000 channels currently on air using its software.
The focus is on existing core capabilities as a broadcast solutions specialist, and the order intake improved 33% to £6.5m. This is underpinned by a 7% increase in ‘sticky’ Service Level Agreements (SLA) renewals, while the weighted pipeline value grew 8% to £10.6m. A key objective is to achieve net cash during FY 2026 which is supported by the solid sales pipeline with improved visibility of recurring SLA revenues.
For the FY December 2025, the EBITDA is forecast at £3.5m on £11.5m of turnover and a PBT of £2m and as there is no tax, the EPS would be 1.6p. This would give a prospective P/E of 9.4x and we calculate the EBITDA/EV to be 6.3x.
Hybridan Comment: The business changes are gathering pace, and despite the 66% price rise since our last comment, the shares still seem fair value at the current price.
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