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
We wish our readers a very Merry Christmas and a Happy New 2025!
| Index | Thursday 5 December Close | Week’s Change |
| FTSE 100 | 8,349.38 | +0.82% |
| FTSE Small Cap | 6,903.30 | +1.48% |
| AIM All Share | 736.92 | +0.75% |
Alphabetically arranged
Share prices and market capitalisations taken from the current price on the
day of publication
LST.L Sensing a Bright New Year
IXI.L On the mend
Light Science Technologies 2.40p £7.80m (LST.L)
| Price | Results | Largest Shareholders | Value |
| 2.2-2.4p | Y/E November | Simon Deacon CEO 28.71% | Turned Profitable |
| Spread: 9.1% | Report April | Daniel Holliday 9.00% | Visible Earnings |
| 52 week High/Low: 3.5/ 2.2p | Report Interims July | Dr Graham Cooley Non Exec Chair 8.26% | Fire safety division alight |
| Guinness Asset Management 6.90% | Visible recurring revenue streams | ||
| Herald Investment Management 5.71% | New international reach |
Source: Alpha Terminal
This week there was a bright Trading Update for the year end November 2024 from this environmental sensor and control technology Company. It reported that revenue is set to increase by around 29% to £12m, gross profit margins to grow to 28% from 23%, so losses to reduce substantially to c.£0.2m from £1.1m and it is trading profitably.
There are three divisions using the core technologies: Controlled Environment Agriculture, Contract Electronics Manufacturing, and Passive Fire Protection.
The fire safety market potential is an estimated £50bn as it is being driven by increasing regulation. Strong progress is being made with the new fire division, for example a customer in construction services has placed follow on orders for its patented injectaclad fire-resistant system being used in two additional residential tower blocks. This order follows on from the first project which will be completed in H1 2025 and projected to be worth c.£0.6m. Having generated revenues of c.£0.3m during H1, the fire division’s FY contribution has increased from £1.5m to £1.7m, while ongoing contracts provide a good level of visibility.
Similar progress is being made in the Contract Electronics Manufacturing division which received sequential orders from a customer with 14 entertainment venues in the US, four venues in the UK, and with eight new venues currently under construction in the US. The growing order is for 29,000 units of its compact sensor circuits used for security applications, worth more than £537,000. There seems significant scope for regular new orders providing a visible recurring revenue stream.
The Agricultural division manufactures technology products and control systems for glasshouses, polytunnels, vertical growing, hoophouses and other indoor growing environmental equipment. The international reach is being expanded with the South African distributor agreement and trials with SensorGrow, which are opening opportunities and news should follow.
The net cash improved marginally to c.£1.2m and there are additional undrawn debt funds available of £0.7m with Close Brothers. Since the £5.2m IPO at 10p in 2021, a further £1.5m was raised at 1p in April 2023 and was used for product development and funding the fire division. Any further funding would likely be for expansion. The increasing conversion of the strong sales pipeline should make a growing contribution to all the key trading metrics. The business operated profitably during H2 2024, and this momentum is expected to be sustained.
Comments: We sense the opportunity is undervalued and further bright updates will help a rerating.
IXICO 10.75p £9.96m (IXI.L)
| Price | Results | Largest Shareholders | Value |
| 10.5/ 11p | Y/E Sept | Octopus Investments 18.2% | Recent funding |
| Spread: 4.7 % | Report December | Gresham House 17.7% | Improved Trading |
| 52 week High/Low: 14.6p/6.45p | Report Interims May | Business Growth Fund 13.9% | New CEO |
| Amati Global Investors 9.3% | |||
| Canaccord Genuity 8.1% |
Source: Alpha Terminal
IXICO’s AI-driven platform helps to transform the advancement of investigational therapies for neuroscience diseases. There are more than 600 CNS (Central Nervous System) diseases that can impact nervous systems; the largest are Huntington's disease, Parkinson's disease and Alzheimer’s, which alone is a market worth come $3.7bn in 2023. IXI’s clients are large pharma and biotech able to remotely access the platform for clinical trial support and insights helping to reduce R&D risk and uncertainty while enhancing disease understanding and drug development efficiencies.
The Finals to Y/E September reported a 13% decline in revenue to £5.8m, which was slightly better than recent expectations. This was due to a stronger H2 after the slower pace of new wins reported in H1. The GP margin was slightly lower at 47% and, although partially off-set by cost reductions, the EBITDA loss increased to £1.7m from £0.8m. Net cash at the year-end was £1.7m and since then a further £4m has been raised at 9.5p.
The funds are to support the Company build its revenue and its £15m order book as it advances medicine and human health by turning data into clinically meaningful information in supporting pharmaceutical companies across all phases of CNS clinical research. IXICO is based in the UK with subsidiaries in the US and elsewhere. The ambition is to be a leading advocate of artificial intelligence in medical image analysis.
A new CEO joined in H2, having been at a similar business with the NASDAQ listed tech company, SOPHiA Genetics INC with a $225.56m market capitalisation. The team is confident of being on a new path towards sustainable performance at scale which should be accelerated by the launch of the next generation TrialTracker AI-driven imaging platform and increasing the orderbook.
Comment: The H2 performance and launch of the new platform is yet to register in the valuation.
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”.
