Small Cap Feast

10th January 2024

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Dish Of The Day:


Admissions: 
AdvancedAdvT Limited (ADVT.L) left its Standard Listing on the Main Market yesterday and joined AIM today.


Delistings:



Whats baking in the oven?

Potential Initial Public Offerings:


Reverse Takeovers:


Change of Market:


Banquet Buffet

1Spatial 53p £58.7m (SPA.L)
The global leader in Location Master Data Management (LMDM) software and solutions secured several multi-year Enterprise contracts in December, closing the year with good momentum. They announced a two-year expansion contract to support the Californian Department for Transportation (Caltrans) in partnership with Rizing. This is the second contract with Caltrans, secured alongside Rizing and adds $0.4m to annual recurring revenue. A three-year contract extension was signed with a global utility headquartered in France, with a total value of approximately EUR 1.8m. A four-year contract with ATKIS-1Gen, a working group of ADV (Arbeitsgemeinschaft der Vermessungsverwaltungen der Laender) that coordinates surveying and mapping in Germany worth approximately EUR1.3m was agreed.

Distil 0.7p £5.4m (DIS.L)
The owner of premium drinks brands RedLeg Spiced Rum, Blackwoods Gin and Vodka, TRØVE Botanical Vodka and Blavod Black Vodka provided a trading update for the third quarter of its current financial year ending 31 March 2024. Unaudited revenues was £571k for the quarter, up 39% year-on-year and cumulative revenues for the 9 months to end 31 December grew 38% year-on-year to £1.2m. Gross profit increased 23% during the quarter to £272k (October to December 2022: £222k) and the cumulative gross profit for the 9 months to end 31 December increased 26% year-on-year to £554k. A&P increased 48% to £198k (October to December 2022: £134k) representing increased promotional slots in major grocery over the Christmas period.

ECR Minerals 0.275p £4.4m (ECR.L)
The exploration and development Company focused on gold in Australia provides an update on its Lolworth Project in Queensland. The 2023 field work season concluded with soil sampling: Reedy Creek returned best rock chips of 22g/t with stream samples of 205 parts per million (PPM), Gorge Creek returned rock chips of 13.75g/t with stream samples of 1395 PPM, and Butterfly Creek reported stream samples of 962 PPM. This has given the Company a solid basis to plan the next stage of the reconnaissance programme. Alongside the gold, the presence of the sought after Niobium-Tantalum Rare Earth minerals was also identified. The work for the 2024 season in Queensland is likely to include trench sampling and drill target generation.

KEFI Gold and Copper 0.612p £30.2m (KEFI.L)
The early mover and successful explorer in the highly prospective Arabian Nubian Shield announces that it has received confirmation of conditional final credit committee approval from the lead lender for its "shovel-ready" Ethiopian development project, the high-grade Tulu Kapi Gold Project. This followed the analogous approvals from other key syndicate members including lead contractors and lead equity parties, and the previously reported actions by the Government of Ethiopia during 2023. Key government actions include the previously negotiated and reported exemptions from foreign exchange restrictions, commitments to provide permanent security protection and the approval of additional protections for the lenders for the project. The entire US$320m finance package is designed at the subsidiary level.

Light Science Technologies 2.45p £8.2m (LST.L)
The company that comprises three divisions: controlled environment agriculture; contract electronics manufacturing and passive fire protection, provided a trading update for the year ended 30 November 2023 (FY23). Unaudited revenue increased by approximately 13% to c.£9.25m (2022: £8.17m), driven by organic and an acquisitive progress. Overhead reductions resulted in c.20% cost savings, while gross margins grew by approximately 27% to c.22.5% (2022: 17.7%). As a result, the unaudited loss before tax is £1.3m (2022 loss: £2.72m) – down approximately 50% year-on-year.

Litigation Capital Management 102p £121.1m (LIT.L)
The alternative asset manager specialising in dispute financing solutions internationally announces a successful resolution on an investment which forms part of LCM's Fund I portfolio. LCM's investment related to a portfolio of two separate construction related disputes. One dispute was heard in the SIAC (Singapore International Arbitration Centre) and the other determined via an arbitration seated in Hong Kong SAR. LCM provided funding to the claimants in both proceedings, which recently received awards in their favour. The subject matter, findings and funding terms remain subject to confidentiality. LCM is seeing increased activity in the Asia region which necessitated the expansion of its investment management team in Singapore in 2023.

Marks Electrical Group 67p £70.3m (MRK.L)
The fast-growing online electrical retailer provides a trading update for the nine months ended 31 December 2023. Revenue from October to December 2023 increased 17.8% year-on-year to £35.1m and revenue year-to-date was up 22.2% to £88.9m. As consumers remain highly price-conscious, the gross product margin did not increase to the levels as expected, and the impact of this in the peak trading period has had a material impact our full year profit guidance. As a result, the Company expects its full year revenue to be in the range of £115-118m with EBITDA in the range of £5-6m.

One Heritage Group* 14p £5.4m (OHG.L)
The UK-based residential developer focused on the North of England announces the practical completion of St Petersgate, Stockport, a residential development project consisting of 18 high-end apartments and one commercial unit. Construction work on this project commenced in Q1 2022 with One Heritage Construction as the principal contractor leading the delivery of the redevelopment. Sales are progressing and all 18 units have exchanged contracts and the commercial unit has been prelet at £15,000 per annum. There is no construction finance to repay, and the Company expects to receive net proceeds of £2.9m later this month.

Proton Motor Power System 5.25p £83.5m (PPS.L)
The designer and producer of hydrogen fuel cells and hydrogen fuel cell electric hybrid systems announces the introduction of its new HyModule S4 fuel cell system solution. The new HyModuleS4 is designed to offer a lower power range, using Proton Motor's proprietary HyStack 200 liquid-cooled fuel cell technology. The introduction of this new product will be complementary to the Company's existing stationary application offerings, including the higher power HyModule S8 system.

Sanderson Design Group 121p £86.6m (SDG.L)
The luxury interior design and furnishings group announces that its Morris & Co. brand has signed a licensing agreement with ENVOGUE International (ENVOGUE), a New York designer and distributor of fashion-forward products for the home. The five-year agreement, covering the USA and Canada, is exclusive for the production of Morris & Co. bedlinen, bath linen and tote bags and is non-exclusive for a broad range of Morris & Co. products including cushions, ready-made curtains, bathroom accessories, doormats, kitchen mats, chairs, benches and poufs. The first products from the agreement will be launched during the coming months for Spring/Summer 2024. Accelerated licensing income of £0.7m will be recognised by the Group in the current financial year to reflect the minimum guaranteed revenues in the agreement.

10 January 2024
*A corporate client of Hybridan LLP or retained by Hybridan LLP for certain services
** Arranged by most recent first
*** Alphabetically arranged

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