Small Cap Feast

11th August 2023

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What’s Cooking In The IPO Kitchen?

Announced ITF 4 August: Tan Delta Systems plc, a Sheffield based Company intends to IPO on AIM. Tan Delta has developed an innovative and differentiated monitoring solution based on real time oil analysis and analytics that offers equipment operators enhanced insight into the maintenance status of their equipment and thus the ability to reduce maintenance costs, improve reliability and reduce carbon footprint. Admission TBC.

Announced ITF 12 July: Substrate Artificial Intelligence, an artificial intelligence company based in Spain that creates, buys and scales companies around AI in diverse sectors such as fintech, agritech, energy, human resources, and health, intends to join the Access Segment of the AQSE Growth Market.

Announced ITF 6 July: Blackpoint Biotech plc, a medical cannabinoids company established to fulfil gaps in the medical cannabis market by creating products that provide fast onset of action and accurate dosing, intends to join the Access Segment of the AQSE Growth Market. Admission delayed.

Breakfast Buffet

De La Rue 55.45p £108.6m (DLAR.L)
The company that offers security products, software solutions, and specialist services announces that it has appointed Brian Small as a Non-Executive Director to the Board, effective 8 September 2023. Brian is a chartered accountant and an experienced FTSE 250 CFO with broad general management experience in retail, wholesale and consumer-branded manufacturing. Brian was the CFO for JD Sports Fashion plc from 2004 to 2018 before retiring to focus on non-executive roles. He was also a non-executive director of from 2019 to earlier in 2023.

FBD Holdings EUR 12.95 EUR453.9m (FBH.L)
The Irish property and casualty insurer announces its half year report for the six months ended 30 June 2023. Profit before tax of EUR39m (2022: EUR 2.5m), supported by growth in Insurance revenue of EUR8.4m primarily in local offices, a reduction in insurance service expenses of EUR35.3m mainly related to past service movement including in respect of Covid-19 Business Interruption (BI) claims, and positive investment returns of EUR8.4m (2022: -EUR15.3m). Combined Operating Ratio (COR) of 81% reflecting continued underwriting discipline and benefitting from positive prior year reserve development including that related to Business Interruption. Retention levels of existing business increased by 0.2% year on year and the income statement investment return of 0.7%, reflects positive investment returns of EUR 8m. The capital position remains strong with a Solvency capital ratio (SCR) of 217% (unaudited) after allowing for the special dividend of 100 % of the ordinary share. Return on equity of 15%.

FIH Group 265p £33.2m (FIH.L)
The international specialist services group with businesses in the Falkland Islands and the UK, announces the appointment of Nicholas Paul Henry as a non-executive director of the Group with effect from 14 August 2023 and as non-executive Chairman of the Group, which will take effect immediately after FIH's annual general meeting on 28 September 2023. Nick was CEO of James Fisher & Sons plc from 2004 to 2019. He is currently a non-executive director of Ark Topco Limited, the holding company of Survitec Group Limited and non-executive Chairman of Giles W. Pritchard-Gordon & Co. Limited.

Global Invacom 4.85p £5.5m (GINV.L)
The global provider of satellite communications equipment and electronics, announces its financial results for the six months ended 30 June 2023. Revenue for 1H FY2023 decreased 16.3% to US$31.3m (1H FY2022: US$37.4m). Gross profit increased 12.7% to US$8.3m (1H FY2022: US$7.4m) and Gross profit margin increased to 26.5% (1H FY2022: 19.7%). Net loss after tax of US$2.1m (1H FY2022: US$3.3m). The Group continues to see some lag in demand for certain legacy products as a result of delays to launch schedules which are being seen across the industry. This, alongside continued supply chain issues, has resulted in the Group recording a net loss after tax for the year. However due to increased business focus on product mix, gross profit improved. Cash and cash equivalents of US$5.5m at 30 June 2023 (30 December 2022: US$9.2m).

Greatland Gold 7.1p £359.9m (GGP.L)
The precious and base metals focused mining development and exploration company, provides an update on the Havieron gold-copper project in the Paterson Province of Western Australia. The main decline continues to progress, having surpassed 1,840 metres. Decline support excavations for ventilation, services and materials handling takes the total development to over 2,600 metres. As noted in Newcrest Mining Ltd’s ASX announcement, over 80,000 metres of growth drilling has been completed at Havieron since Greatland announced the Havieron March 2022 MRE. Greatland also announces the release of an updated 3-dimensional (3D) interactive model of the Havieron project, which is available to view on the Company's website. The 3D model has been updated to include all Havieron drill intercepts released to date.

ICG-Longbow Senior Secured UK Property Debt Investments 37.8p £45.9m (LBOW.L)
The closed-ended investment company announces return of capital. Following further partial repayments of the Northlands Loan bringing the receipts since 31 January 2023 to approximately £9m, LBOW have returned a further 7.40 pence per ordinary share to shareholders, being £8.98m in total based on the number of ordinary shares in issue. This return of capital will be effected by way of an issue of redeemable B shares to existing shareholders pro rata to their shareholding on the record date and the subsequent redemption of those B shares. The estimated unaudited NAV per share as at 30 April 2023 was 57.67 pence per ordinary share. The estimated unaudited NAV per ordinary share as at 30 April 2023 adjusted for the return of capital would be 50.27 pence per ordinary share. Post the return of capital, the Company will have returned an amount of 44.90 pence per ordinary share to shareholders being £54.46m in total. Further properties within the Northlands portfolio are under offer for sale and their completion at the amounts offered will see the loan repaid in full together with interest and exit fees.

Marula Mining 15.0p £17.25m (AQSE: MARU)
The African focused mining and development company, announces that the Board has approved an approx. ZAR 26m (approx. US$1.35m) resource drilling exploration and mine planning program for the Blesberg Lithium and Tantalum Mine in South Africa. The Program will be funded by Q Global Mining (Pty) Ltd, a subsidiary of Q Global Commodities, with the cost of the Program to be offset against subscription funds to be received from Q Global, pending the approval of the conditional subscription agreement and Rule 9 waiver as announced 31 January 2023. The appointment of drilling contractors to complete the Program, which is planned to consist of a two-phase 2,900 metre and 38 hole diamond drilling, is in advanced stages and expected to be completed shortly, with mobilisation to site and the commencement of drilling to then follow.

Smoove 47.5p £27.1m (SMV.L)
The company that provides digital platforms to mortgage brokers, conveyancers, estate agents, and lenders provides an update regarding a possible cash offer for the entire issued and to be issued ordinary share capital of the Company with PEXA Group. Smoove confirms that constructive discussions have continued between the parties and that a formal due diligence process is now well advanced. In order to allow for due diligence to continue, the Board has requested, and the Panel on Takeovers and Mergers has consented to, an extension to the deadline by which PEXA is required either to announce a firm intention to make an offer for Smoove or to announce that it does not intend to make an offer. Such announcement must now be made by not later than 5.00 p.m. on 8 September 2023. This deadline can be further extended by the Board, with the consent of the Takeover Panel.

Touchstone Exploration 81.0p £187.4m (TXP.L)
The international upstream oil and gas company currently active in the Republic of Trinidad and Tobago reports its operating and financial results for the three and six months ended June 30, 2023. Quarterly production average volumes of 1,827 boe/d, representing a 29% increase relative to the 1,420 boe/d produced in the prior year equivalent quarter. Natural gas production from our Coho-1 well averaged net volumes of 4.2 MMcf/d (703 boe/d) in the quarter and contributed $811k of net natural gas sales at an average realized price of $2.11/Mcf. Realised petroleum and natural gas sales of $7.2m compared to $12.6m in the 2022 comparative quarter, as $811k in net natural gas sales were offset by decreased crude oil sales of $6.2m, reflecting a 36% decline in realised crude oil pricing and a 21% decrease in crude oil production. The Company recognised a net loss of $71k ($0.00 per basic share) and comprehensive income of $136k in the quarter compared to a net loss of $262k ($0.00 per basic share) and a comprehensive loss of $529k reported in the same period of 2022.

Vp 572.5p £229.9m (VP..L)
The equipment rental specialist, announces that the Group's Chief Executive, Neil Stothard, has informed the Board of his decision to retire at the end of September 2023. Neil has been with Vp since 1997 when he joined as Group Finance Director, later becoming Managing Director in 2004 before transitioning to Chief Executive. Anna Bielby, the Group's Chief Financial Officer will become Chief Executive. Her previous roles include Interim CFO at Lookers plc, CFO of KCOM Group PLC and a director at PwC. The Group has commenced a CFO recruitment process and further regulatory announcements will be made regarding this position in due course as appropriate.

11 August 2023
*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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