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
9th May 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.
Trading Updates from these companies may build a bridge to firmer land
HERC Infrastructure Scaffolding
SBDS Winning with AI
Hercules Site Services 49.5p £39.5m (HERC.L)
Financial Calendar:
Year End September, Finals reported on 13 January 2025, Interim results are expected in Mid-June
Top Three Shareholders:
Brusk Korkmaz (CEO) 45.02% held through Hercules Real Estate Limited, Martin Tedham 12.69% (NED) held through Wasdell Packaging Limited, Premier Miton Group plc 10.09%
Key Investment Points:
Finding Skilled workers, Balance Sheet strengthened, Organic & Acquisitive growth
Hercules Site Services is a technology-enabled labour supply and recruitment services provider, specialising in the UK infrastructure and construction sectors. Hercules services are powered by a bespoke Personnel Management System, and a Mobile Recruitment app allowing agility and flexibility, ensuring the right builder is at the job in the right location.
The Trading Update to March 2025, reported this week on 7 May, anticipates revenue to be more than 17% higher than last year at £54m, which is in line with market expectations. The FY September 2024 reported revenue of £101.93m on a gross profit margin of 14.69%, with a PBT of £2.25m. The current year September 2o25 forecast is for a PBT of £3.33m, an EPS up 4.2% to 3.65p and a 1.7p dividend. This would represent a prospective P/E of 13.3x, with a 3.5% dividend yield. The revenue growth is underpinned by the prospect of increasing UK infrastructure sites boosted by government commitments.
The disposal of the Suction Excavator subsidiary for £2.4m in February 2025, also materially reduced debt and lease liabilities by approximately £9m. In September 2024, £8m was raised at 49.5p a share which has strengthened the balance sheet to net cash so releasing resources for organic and acquisitive growth. A Training Academy in the West Midlands was opened in January 2024 and has already trained 1,100 entrants and is generating revenues. The first acquisition was in December 2023 for Future Build Recruitment, where Hercules paid £1.25m to expand into white-collar and permanent recruitment which complemented the blue-collar infrastructure offering. A slowdown in general construction may enhance the acquisition opportunities.
A significant increase in tender enquiries during Q2 and into Q3 across many sectors was reported by the Company reflecting an increasing UK commitment to infrastructure. There are a series of substantial construction and infrastructure upgrades initiated in the nuclear, power and energy distribution, aviation, water, and rail sectors. The Company has already benefited from the OFWAT approved £104bn investment in the water sector as Hercules successfully tendered for a framework agreement with Wessex Water in April 2025, which will include both Labour Supply and its Civil Projects divisions. Wessex Water has identified a need for investment of £3.65bn between 2025-30 which is more than double their previous spend of £1.5bn and so presenting significant opportunities.
Hybridan Comment: Organic growth should improve with increased investment in UK infrastructure and construction. There is also a realistic prospect of acquisitions.
Silver Bullet Data Services Group 41.5p £7.25m (SBDS.L)
Last Reported in Friday Takeway, 15 November 2024 at 49.5p
Financial Calendar:
Year End December, FY2023 reported on 29th May 2024, Interims to June, Interims due to be reported by end of September
Top Three Shareholders:
taken from Alpha Terminal, 8 May 2025
Gresham House 12%, Keith Morris 9.8%, Neil Donovan 5.3%
Key Investment Points:
Blue Chip Clients, AI boosting performance, Nearing break-even
Silver Bullet Data Services is a provider of AI driven digital media services and products helping clients to better understand data collected and stored so it can encourage clients’ customers to spend more. SBDS’s platform is regularly used by clients such as Coca Cola, Sony, Marriott, Disney, Sunkist, and Burger King.
Yesterday on 8th May, Silver Bullet Data Services updated on Q1 trading to March 2025 (YE December) and reported new business wins. Its Q1 revenues improved 15% to £2.31m compared to last year and the YE December 2024 trading update reported a likely 13% increase in revenue to £9.4m, with revenue from its proprietary 4D AI product increasing 25% to £3.5m. The gross profit margin is 75% while the EDITDA loss for the Interims to June 2024 was £0.9m, with a reported loss of £1.6m. The FY2024 target is to achieve a consistent positive EBITDA run rate.
A low-cost opportunistic acquisition was made for the IP of Codex AI from a company in administration. It cost just £50k, payable in two tranches with a 10% of net revenues earnout to December 2025. This complementary deal made in November 2024 has software that extracts consumer behaviour from social platforms such as Instagram, X, YouTube and Facebook globally. Codec AI also has international clients including Diageo, Unilever, Mars and Procter & Gamble.
Along with the Q1 Update, a contract from a well-known global retail brand was announced for approximately $1.5m over two years. Under this engagement, Silverbullet will fulfil a strategic data transformation role aimed at driving customer growth by developing a digital customer management and activation programme, including data driven activities through 4D AI and Codec. Two further new contracts were reported with global brands in the beverage and FMCG sectors using Silverbullet's 4D AI for digital advertising targeting. These contracts suggest increasing momentum and combined contribute to approximately 74% of the full-year revenue target for 2025.
A working capital facility was negotiated in October 2024 on receivables backed by a revolving line of credit, initially for £2m with up to £4m available over 24 months. This should be sufficient working capital to achieve a positive EBITDA run rate. The last funding was in November 2023 when £1m was raised at 70p per share, which was a 27.2% premium to the then share price.
Hybridan Comment: The lacklustre share price performance since November contradicts the Company’s strengthening operating performance. A high margin AI media tech company; winning orders from global clients is an attractive proposition.
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”.
