Small Cap Feast

11th October 2023

Dish of the day
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Dish Of The Day:

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, joined the AQUIS Growth Market yesterday 10th October, with a market capitalisation on admission of approximately £21.7m for its Class B shares.

No leavers today.

What’s Cooking In The IPO Kitchen?

Announced ITF 11 October: Cykel AI, the company developing artificial intelligence AI software designed and trained to execute commands in response to natural language directives, specifically within the realm of computer interfaces, intends to join the Access Segment of the AQSE Growth Market. Admission on or around 25 October.

Announced ITF 2 October: Adsure Services, the holding company for TIAA Limited, a specialist business assurance provider operating across the Housing, Healthcare, Government, Education, Charities, and other sectors in the UK, intends to join the Access Segment of the AQSE Growth Market. Admission expected on 30 October.

MicroSalt, the developer of salt-producing technology designed to deliver full flavor with less sodium, announces the launch of an exempt public offer of Shares to retail investors for up to £2.5m via PrimaryBid as part of its spin out from AIM listed Tekcapital plc (TEK.L). The Company is looking to raise £10m - £15m on IPO and announced revenues of US$0.638m in 2022, its first year of retail sales of SaltMe Crisp brand and Microsalt salt shakers in US based supermarkets and through Amazon US. Admission to trading on AIM is expected to be 18 October.

Breakfast Buffet

Avingtrans 405p £133.2m (AVG.L)
The company that designs, manufactures and supplies components, modules, systems and associated services to the energy, medical and industrial sectors, announces that Stainless Metalcraft, part of the Group's Energy and Medical division, has secured two national contracts that aim to make safe nuclear waste for long-term storage of the UK's legacy of nuclear assets. Together, the contracts (including one new contract) are valued at £14.5m and the additions boost Metalcraft's forward order book to more than £75m over the next six years.

Brickability Group 46.5p £139.6m (BRCK.L)
The construction materials distributor, issues a trading update for the six-month period to 30 September 2023 (H1 FY24). Revenue are expected to be approximately £324m (H1 FY23: £352.7m). Adjusting for the impact of acquisitions, H1 FY24 revenue on a like-for-like basis represents a decrease of c.14% compared to the same period in the prior year. As a result, the Board currently anticipates reporting adjusted EBITDA for the six months to 30 September 2023 of at least £24.0m, in line with Board expectations.

Cambridge Cognition 75.4p £26.0m (COG.L)
The company that develops and markets digital solutions to assess brain health, announces that it has secured a contract for a sizeable later stage clinical trial, following a competitive tender. The contract combines the Company's proprietary CANTAB® touch-screen cognitive assessments with verbal assessments from its recent Winterlight Labs acquisition, for the first time. This initial contract is valued at approximately £1m and revenue is expected to be recognised over a two-year period, starting in 2023. There is potential for a further contract with the same customer, of slightly higher value, in 2024 once the initial results have been analysed.

Eneraqua Technologies 38.5p £12.8m (ETP.L)
The provider of energy and water efficiency solutions, announces its interim results for the six months ended 31 July 2023. Revenue increased 7% to £26.0m (H1 23: £24.2m), reflecting contract wins and project completions in the period. Adjusted EBITDA was £0.79m (H1 23: £3.98m) as a result of continued investment and R&D. Net cash was £0.5m (H1 23: net debt of £0.2m) as working capital investment in FY23 unwound. Group's order book across Energy and Water stands at £146.2m and, taking a prudent view, approximately 25% is now anticipated to be delivered in the remainder of H2 FY24.

Gelion Group 24.5p £26.6m (GELN.L)
The Anglo-Australian battery innovator, announces new Lithium-Sulfur (Li-S) Research and Development (R&D) Facility designed to optimise development and accelerate market readiness of this technology by producing more advanced cell prototypes. Based in Sydney, adjacent to Gelion’s research and corporate office, the facility will allow the Company to advance prototyping toward cell development and to capitalise on the combination of Gelion’s existing technologies with the intellectual property (IP) packages acquired from Johnson Matthey in March 2023.

Jubilee Metals Group 6.3p £172.5m (JLP.L)
The diversified leader in metals processing with operations in Africa, announces its audited results for the year ended 30 June 2023 (FY23). Revenue increased by 1% to £142m. Gross profit was down 31% to £31m (FY22: £45m), impacted by factors such as average Platinum Group Metals (PGM) basket prices year-on-year down by 22%, an increase of 11% in US$ operating cost per PGM oz. EBITDA decreased 33% to £24.8m (FY2022: £36.8m). The Company confirms its guidance of 42,000 PGM ounces in South Africa and 5,850 tonnes of copper for FY24 which is impacted by the upgrade at Project Roan in Zambia.

Pires Investments 1.25p £2.3m (PIRI.L)
The company focused on next generation technology, notes the announcement by its portfolio company, Smarttech247 Group PLC (Smarttech247), that it has entered into a strategic partnership with cybersecurity Company; Splunk Inc (NASDAQ: SPLK). This partnership follows on from the previous week's announcement by Smarttech247 of a new contract with an existing Government of Ireland Department client worth around EUR400k over 2 years and a contract extension for another 3 years with another existing client, Auto Nation, the largest car retailer in the U.S.

Power Metal Resources 0.66p £13.6m (POW.L)
The exploration company with a global project portfolio, announces key developments to its currently 100% owned uranium business, which covers a combined 1,012km2 across 17 properties (the Uranium Portfolio) in and around the prolific Athabasca Basin in Saskatchewan, Canada. The Company has identified significant uranium targets at the Tait Hill and Soaring Bay Projects. Following very low acquisition costs, the Company believes that it is adding value to a portfolio with well thought out, methodical and inexpensive exploration.

Synairgen 7.25p £14.5m (SNG.L)
The respiratory company developing SNG001, an investigational formulation for inhalation containing the immunomodulatory broad-spectrum antiviral protein interferon beta, announces that Joseph Colliver has been appointed Chief Financial Officer (CFO) and Executive Director with effect from Monday 6 November 2023. Joseph has previously held CFO and senior commercial roles within the Kantar division of WPP PLC. In conjunction with this appointment, and following nearly 20 years of loyal service and an orderly handover, John Ward will step down from the role of CFO and Executive Director on Friday 3 November.

Watkin Jones 33.3p £85.4m (WJG.L)
The residential for rent developer and operator in the UK, provides a trading update for the year ended 30 September 2023 (FY23). Since the prior trading update on 19 July 2023, the Group has incurred certain additional costs and these costs are not expected to carry forward into the current year. The Group now expects FY23 revenue to exceed £400m and underlying PBIT to be at approximately break-even. Moreover, the Group's level of secured revenue for FY24 is c. £330m. The Group is making progress with its assets for forward sale in the market and remains active, but highly selective in the land market. There is no change to the FY24 guidance provided in the July Trading Update.

11 October 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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