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.
Restructured businesses show firmer growth pathways
MAI Financing Growth
ZIN Dreams into Reality
Maintel Holdings 85.00p £15.92m(MAI.L)
Financial Calendar:
Year End 31 December, reported 6 May 2025, Interims to 30 June, reported 18 September 2025
Top Three Shareholders: *
JDS Booth 24.37%, Harwood Capital LLP 18.93%, JA Spens 17.46%
Key Investment Points:
Refinancing Completed, Strong Order Book, Long Term Contracts
*As at 31 March from the Company website before the 22 June fundraise
The provider of critical data infrastructure and services for cloud communications, connectivity and security managed services to clients with between 250 and 10,000 employees updated on trading on 22nd January 2026. It was reported that the sales pipeline was at its strongest for many years with around £50.0m of new business from both new and existing customers. The gross profit margins average 30% across the product and services range and contracts are typically for between 3-5 years. The new contracts included a nationwide network with a network security managed service for a leading UK retailer an Agentic AI automation deployment for a large credit management company and public cloud unified communications solutions across around 320 stores and distribution centres in the UK and the Republic of Ireland for a major retailer.
The Interims to 30 June 2025 were reported on 18 September, and showed recurring revenue down to 73.4% from 78.7% in the period to 30 June 2024 and that net debt had increased to £18.2m from £15.6m in the prior period. The debt increase was partly due to the timing of working capital and interest payments which was addressed with a re financing fund raise completed on 22 June. The fundraise which included a retail offer was to improve the Company's overall financial position and allow it flexibility to execute on its ongoing transformation programme that was started in 2023.
The Company’s expertise is evidenced by the range of accreditations covering cloud communications, connectivity, cyber security, and contact centre transformation. Maintel helps organisations to modernise without disruption by integrating legacy systems, ensuring UK data sovereignty, and providing resilient, future‑ready platforms. This is a large market which KBV Research forecasts to grow from $16.58bn in 2025 to $50.32bn by 2032.
The fund raise completed last week was in total £5.5m of which £3.5m was equity at 80p, and a £2m convertible loan note. The issue price was a 33.3% discount to an already depressed share price, and the convertible loan has a 12% coupon and a 96p conversion price. The fundraise was completed largely with existing shareholders and one of whom, Jon Spens, will join the Board as a Non-Executive Director following the Company's upcoming AGM. The appointment to the Board will be subject to diligence and the Company will make further announcements as appropriate. There is also a £12m financing facility with HSBC with an £8m term loan to July 2029.
The Company expects 31 December 2025 full year results to be in line with consensus which are due to be reported after the AGM on 30 June. Consensus revenue from Alpha Terminal is forecast at £92.2m against £97.86m in the prior period to 31 December 2024, with an EBITDA of £7.2m from £10.5m in the prior period.
Sales in the Public Sector were subdued although the performance of major enterprise accounts within the Private Sector continued to be strong particularly in Retail, Financial Services, Public Healthcare, Local Government, Higher Education, Social Housing and Utilities. The forecast from Alpha Terminal for 2026 is for an £8.0m EBITDA,£98m of turnover and with a PBT of £1.8m.
In February 2026, a GM was called and then withdrawn by 5% shareholder Oryx International Growth Fund Limited, part of the Harwood Capital Management Group funds. The GM was seeking to remove a director and the appointment of new one. The sentiment behind the GM requisition may have been answered by the refinancing and the clearer growth pathway that is emerging.
Hybridan Comment: The refinancing ‘pain’ has been taken at 80p which is the lowest share price that the Company has had in 5 years. The recovery addressing a significant market seems underway and the EV/EBITDA for December 2026, we calculate from Alpha Terminal forecasts, at an undemanding 3x.
Zinc Media Group 57.00p £16.61m (ZIN.L)
Last Reported in Friday Takeaway, 2o September 2024 at 66.0p
Financial Calendar:
Year End 31 December, reported 16 April, Interims to 30 June, reported 11 September 2025
Top Three Shareholders:
Herald Investment Trust plc 33.19%, Canaccord 6.35%, Premier Miton 4.75%
Key Investment Points:
High IP Content Margins, Global Distribution Partners, Due a re-rating
Zinc is no longer just a television production company as over recent years it has acquired and built a content creation group. It operates as two integrated divisions of Television and Content Production giving a competitive advantage. Yesterday, 25 June, it announced the cinema release of WHAM! 10 Days in China, a feature documentary. The 90-minute film tells the story of WHAM!'s landmark 1985 concerts in Beijing and Guangzhou which is the first by a Western pop group in China and is on worldwide theatrical release through Sony Music Vision. The film’s release illustrates the Group’s commercial model of producing premium (high margin) IP-rich content that can be monetised across multiple windows such as cinema, broadcast and internationally. By partnering with major music and distribution groups, the IP rich content's geographic reach and commercial life is extended. As the film's producers, Zinc generates revenue from both its production and onward exploitation across the expanded channels.
The finals to 31 December 2025 reported that revenue increased by 28% to £41.5m, but with a 4% decline in gross profit margins. The EBITDA improved to £1.9m from £1.5m in 31 December 2024, however the statutory loss before tax increased to £2.6m from £1.4m in 31 December 2024 after increases in investment and acquisition costs. IP revenue has a gross margin of around 90%, and its growth is a key target. Cash held was £3.4m compared to £6.3m in 31 December 2024 and the £3.4m cash netted out to zero with debt. There is a new £3m revolving credit facility with Lloyds Bank. Middle East revenue grew 70% to £8.5m with total international revenues up 20% to £18.0m and further rapid growth is anticipated. The Group is targeting a further £1m of annualised savings during FY 2026. The launch of Zinc Distribution in October 2025 adds to the business mix and will help drive long term high-margin revenue from global programme and format sales and there is a highly advanced pipeline of opportunities.
The CEO is confident of the strengthened platform's progress from a growing base of owned IP and a clear strategy for organic and acquisitive growth. The current year to 31 December 2026 g has started positively with £21m of projects secured and highly advanced in the pipeline. Additionally, the Group is progressing discussions over commissions worth a further £10m and is in early-stage discussions with eight large projects, each with a value of over £1m that could be delivered this year.
With a strong pipeline and the benefit of cost savings made in 2025, the Group remains on track to deliver the forecast for FY 31 December 2026 from Alpha Terminal for increased revenue of £44.9m, and a 39.4% increase in EBITDA to £2.92m which we calculate gives an EV/EBITDA of 5.7x. Management is confident of reaching its medium term targets for £50m of revenue and £5m of EBITDA.
Hybridan Comment: The rating seems overly cautious for a growing contract winning media content creator and distributor.
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”.
