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
8th 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.
Technology enabled companies establishing profitable growth credentials
RFG Time to reap
TENG Scalable Offerings
Roebuck Food Group 16.00p £16.18m (RFG.L)
Last Reported in Friday Takeway, 4 April 2025 at 16.5p
Financial Calendar:
Year End December, reported 28th March, Interims June, Interim results expected before end September
Three Main Shareholders:
Premier Miton Group plc 9.08%, Sean O’Driscoll 7.66%, EDOCO Limited 6.62%
Key Investment Points:
Strategically Reset, Core Profitability, Commercial opportunities
The strategic reset underway originated with the identification of investment themes based on the team’s practical operational experience, business contacts and networks. Roebuck believes that climate-smart agriculture and resilient food supply-chains will present major investment opportunities.
In December 2024, Roebuck completed an over-subscribed equity raise of £8.2m, at 16p per share. The proceeds were to fund transactions and for general corporate purposes. Roebuck acquired control of Biotechnology Innovations (BI) and has a call option that can take the holding in BI to 94.47%. BI has patent-protected and patent-pending technologies for animal-manure and animal-nutrition treatment. Animal agriculture is the largest source of methane emissions that can be influenced by better practices and is a major driver of global warming.
The core businesses are Foro Food Solutions which is based in Cork and comprised of two parts: i) the sourcing of plant-based ingredients and products primarily for the Food Service and Food Manufacturing sectors ; and ii) a facilitator of seamless UK-EU trade, supporting food manufacturers, service providers, ingredient companies, and retailers with tailored value-added solutions. In November 2023, Roebuck acquired Moorhead and McGavin, a specialist in the import, milling, and contract packing of dried pulses, cereals, grains, pasta, rice, and flours, which made a profit of £0.3m in 2024. Overall, these continuing businesses were profitable in 2024 and generated cashflow.
The Finals to FY December 2024 reported strategic progress as two loss-making subsidiaries have been moved out of the Group, making comparisons awkward. Over the 12 months, turnover from Continuing Operations was £11.5m, with an operating loss of £0.6m, excluding acquisition and related fees. The chairman, Tommy Conway, has over three decades of investment banking and corporate finance experience as well as being the former business editor of the Irish Farmers Journal. He was also an equity analyst and institutional equity sales director with Davy Stockbrokers. The Interims to June are due to be reported in September.
Hybridan Comment: There has been a step change, although the shares have stood still, but a clearer picture may emerge of the value adding process underway.
Ten Lifestyle Group 60.25p £59.61m (TENG.L)
Financial Calendar:
Year End August, reported 13 November 2024, Interims to February, reported 23 April 2025
Three Main Shareholders:
Canaccord Genuity WM 12.7%, Mr Alexander Cheatle (CEO) 11.6%, Lombard Odier Investment Managers 8.6%
Key Investment Points:
AI assisted services, Scalable growth in profits, Muti-year contracts
In early August, Ten launched two additional technology innovations for its concierge, and lifestyle platform. These will enhance the membership content and communications to hyper-personalise, with private membership offerings and privileges, the services it provides to its corporate clients' partners to help them attract and retain wealthy affluent customers. The partnerships are based on multi-year contracts and clients are private banks, premium financial services, and luxury brands. include HSBC, Bank of America and Westpac.
The newly launched complementary services are accelerating the leverage of its AI and automation technology. The services are Ten Digital Dining and Guardian which are being rolled out across Ten's international client base. Ten Digital Dining is integrated with OpenTable, a leader in restaurant tech and is expected to improved restaurant digital booking and AI assisted recommendations, so members can search and book over 60,000 restaurants and are 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.
Ten has secure material contracts that are expected to underpin profitable growth into FY 2026. A multi-year renewal of a large contract in Europe, including an uplift in fees for a digitally led service, has been secured. A new loyalty program is expected to grow an existing large contract in Europe. A large contract is classified as being worth between £2m and £5m per annum. In July a new multi-year contract was announced with one of Japan's leading financial services providers and was won from a competitor. This client is classified as a ‘medium client’ which are worth between £0.25m and £2m in fees per year. Ten will initially provide a digitally enabled concierge programme for the provider's High Net Worth client and will include chat service functionality via LINE (a popular messaging app in Japan). A similar contract was recently won with a private bank in the Middle East.
The Interims to February 2025 reported little change in net revenue to £32.8m. The emphasis is to increase profit from the embedded clients with compelling new products and services by leveraging in-house generative AI to win new contracts, while driving the Group’s margin, efficiency, scalability, and service quality. Progress was becoming evident at these Interims with a sharply improved PBT to £1.1m from £0.3m. The Group expects to generate net cash in H2 25 after increasing interim net cash to £6.8m, which is up from £1.9m in H1 24 and from £3.39m for FY 2024.
The Finals to August 2025 are forecast to show slightly increased revenue growth to £68m, an EBITDA increase to £13.6m up from £10.7m, but the bigger change is the jump in PBT to £3.85m from £1.02m and an EPS of 3.72p up from 1.2p. This would represent an EBITDA/EV of 3.8x and a prospective P/E of 16.4x for FY 2025, before dropping to 11.5x if growth comes through as expected for FY 2026.
Hybridan Comment: The additional AI services are scalable and profits and cashflow seem set to accelerate despite the moderate revenue growth.
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