Small Cap Feast

12th October 2023

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Atlantis Japan Growth Fund shares have delisted following their merger with Nippon Active Value Fund.

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

Andrada Mining 6.15p £95.3m (ATM.L)
An African technology metals mining company with a portfolio of mining and exploration assets in Namibia, confirms the commencement of an initial exploration programme for the Brandberg West exploration licence. Commencement of an exploration programme at EPL5445 includes: 1) Evaluation of the polymetallic mineralisation of the historical opencast operation. 2) Investigation of the mineralised extensions beyond the previously mined site, and 3) Mobilisation of a planned 3,000 metre drill programme which is scheduled to commence during the second half of this calendar year.

Brown (N) Group 19.38p £89.8m (BWNG.L)
A UK clothing & footwear digital retailer, with a home proposition announces its interim results for the half year ended 2 September 2023. Group revenue contracted 10.4% to £297.0m (H1 23: £331.5m), as a result adjusted EBITDA reduced 37.7% to £17.5m (H1 23: £27.9m). The Group made a marginal profit before tax of £0.1m (H1 23: £4.3m) and holds cash equivalents and total accessible liquidity of £133.1m. RCF and overdraft remain undrawn with limits of £75m and £12.5m respectively. FY24 Adjusted EBITDA expected to be in line with market expectations.

Distil 0.45p £3.1m (DIS.L)
The owner of drinks brands RedLeg Spiced Rum, Blackwoods Gin and Vodkas announces its unaudited interim results for the six months ended 30 September 2023. Turnover increased by 37% to £632k (2022: £460k), as a result gross profit increased by 35% to £283k (2022: £210k). Loss before tax decreased by 43% to £314k (2022: £555k) and the Company held cash reserves at period end of £321k. The Company also announced their launch of RedLeg ecommerce site which is driving brand visibility and a new revenue stream. The Company are confident that they will continue to build within both UK on trade and export markets.

Hotel Chocolat Group 137.5p £189.1m (HOTC.L)
A direct-to-consumer premium chocolate company, announces its audited full year results for the 53 weeks ended 2 July 2023 (FY23). Revenue declined by 10% to £204.5m (FY22: £226.1m), as a result, underlying EBITDA decreased 41% to £24.1m (FY22: £40.8m). Underlying loss before tax and exceptional costs of £0.8m (FY22: Profit before tax and exceptional costs of £21.7m), and the Company held cash and cash equivalents at period end of £11.1m. Post period, the Company opened 4 of a planned 12 new stores and is currently trading in line with expectations.

Karelian Diamond Resources 3.75p £3.5m (KDR.L)
The diamond and base metals exploration and development company focused on Finland and Ireland announces results from a stream sampling progamme in Northern Ireland. The Company confirms the prospectivity of the Company's licence area for nickel, copper and platinum group metals. Thirty three stream sediment samples, with an average weight of circa 18kg per sample, were collected across an area totalling 750 km2. The area has yielded five samples each having over 1,000 indicator minerals primarily comprised of Chromite and Forsterite with some Chalcopyrite and gold grains. The Company is planning a follow up programme focused on the highly anomalous river catchment area, together with some additional microprobe analysis.

Kore Potash 0.58p £20.6m (KP2.L)
The potash development company with 97%-ownership of the Kola Potash Project and Dougou Extension Potash Project in the Republic of Congo (RoC), provides its quarterly update for the period ended 30 September 2023. The Company has signed a revised agreement with SEPCO Electrical Power Construction Corporation to provide the Company with engineering procurement and constructive contract for the construction of Kola. PowerChina International Group Limited has also commenced work in the RoC to support the provision of guarantees regarding an EPC contract for Kola. The company has also completed a US$1.0m fundraise and holds US$1.1m in cash.

Marks Electrical Group 104p £109.1m (MRK.L)
A online electrical retailer, provides the following trading update for the six months ended 30 September 2023 (HY24). Reported revenue growth of 24.8% to £53.9m (HY23 £43.1m), and growth in their next-day service offerings with integrated, gas, electric and television installation services achieving over 7,000 installation orders in the first half, (HY23: 2,500). The Company has invested £1.2m in their vehicle fleet and distribution centre, improving their capacity and training facilities, and has a net cash position of £10.9m (HY23: £7.7m). The Company look forward to achieving their full year targets.

Norman Broadbent 6.25p £3.9m (NBB.L)
A executive search and interim management firm offering a portfolio of integrated leadership acquisition & advisory services, announces its Quarter 3 2023 trading update. Revenue of £3.2m, up 60% over the same period in 2022 (Q3 2022: £2.0m), as a result, net fee income (NFI) of £2.8m up 65% (Q3 2022: £1.7m) and Q3 year to date NFI of £7.9m, up 58%. The Company further announces that its pipeline of contracted revenue at the end of Q3 2023 is £2.1m, up 62% on the previous year.

Shield Therapeutics 6.05p £47.3m (STX.L)
A commercial stage, pharmaceutical company with a focus on addressing iron deficiency with its lead product Accrufer®/ Feraccru® (ferric maltol), announces that Hans-Peter Rudolf is standing down from his role as Chief Financial Officer (CFO) of the Group as of 20 October 2023 to pursue other opportunities. Shield also announces that Paul Spoors, Group Company Controller, will assume additional responsibility and report directly to the Shield's Chief Executive Officer.

Windward 72.5p £62.1m (WNWD.L)
The maritime AI company, announces a number of contract wins and renewals in H2 2023. The Company announced that it has won two additional US government customers with no customer churn. The rest of the world Government segment has also performed strongly, with four new contracts. Furthermore, the renewal of the contract with the Nigerian government has taken place, adding $1m of ACV per year over three years. The Company confirms it is trading comfortably in line with market expectations for the year to 31 December 2023.

12 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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