Small Cap Feast

12th September 2023

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What’s Cooking In The IPO Kitchen?

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. Admission delayed.

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


Aquis Exchange 365p £100.4m (AQX.L)
The creator and facilitator of financial markets announces that it intends to change the proprietary trading rule on its UK and EU trading platforms in its Aquis Markets division. The rule, which does not allow aggressive non-client proprietary trading, was introduced by Aquis in 2015 and has successfully reduced market impact and signaling risk. Aquis will change the rule to allow liquidity providers the option to choose if they wish to interact with aggressive non-client proprietary trading. Implementation will take place, subject to regulatory non-objection, in October 2023.

Alpha Group International £21.2 £918.4m (ALPH.L)
A high-touch provider of financial solutions, dedicated to corporates and institutions operating internationally, announces that it has entered into a conditional agreement, pending approval by the Dutch Central Bank, to acquire c.85% of Financial Transaction Services B.V., trading as Cobase, a leading multibank connectivity platform. The initial consideration for the acquisition is EUR9.4m (£8m) in cash, with the remaining stake to be acquired via a performance-based earn-out between 2025 and 2028. Alpha and Cobase's offerings are highly complementary with one another, and the Board believes there are opportunities to amplify one another's growth by leveraging and sharing each other's unique capabilities and experience.

Feedback 78.5p £10.5m (FDBK.L)
The clinical infrastructure specialists, announces its audited results for the twelve months to 31 May 2023. The Company announced a 74% increase in revenue to £1.02m (FY22: £0.59m), of which Bleepa-CareLocker contributed 74%, 89% increase in sales to £1.27m (FY22: £0.67m) and operating loss increased to £3.42 (FY22: £2.51m), reflecting expansion and improvements to the technology. The Company holds cash of £7.32m at period end. The Company announced the Sussex Integrated Care System and Community Diagnostic Centre pilot contract extension - providing increased revenue visibility.

hVIVO 19.25p £131.0m (HVO.L)
The leader in testing infectious and respiratory disease products using human challenge clinical trials, announces its unaudited interim results for the six-month period ended 30 June 2023. Revenue growth of 52% to £27.3m (H1 2022: £18.0m) as a result EBITDA increased by over 100% to £5.2m (H1 2022: £2.3m) and EBITDA margin increased to 19.1% (H1 2022: 12.6%). The Company holds net cash of £31.3m. The Company completed the manufacturing of Influenza H1N1 and Omicron human challenge viruses. Their Human metapneumovirus (hMPV) challenge model under development is funded by an end-to-end human challenge service contract with a North American biopharmaceutical company. hVIVO increases its revenue guidance to £55m (excluding other income) for 2023 and increases its EBITDA margin guidance for 2023 to c.19%.

Northern Bear* 54.5p £10.2m (NTBR.L)
The group of companies providing specialist building and support services to customers in Northern England and across the UK, provides a trading update ahead of its Annual General Meeting at 2:00pm today. The Company confirms that the Group has continued to trade in line with management’s expectations since publication of the preliminary results on 17 July 2023. Trading in the new financial year from 1 April to 31 July is ahead of strong prior year results for the same period, and site activity levels remain high despite the ongoing economic challenges and their related impact on the construction industry. The company’s forward order book remains robust and is expected to support full year results in line with management’s and the market’s expectations.

N4 Pharma 1.35p £3.2m (N4P.L)
The pharmaceutical company developing Nuvec®, a delivery system for oncology, gene therapy and vaccines, announces its unaudited interim results for the six months ended 30 June 2023. The Company reduced its operating loss for the period to £646k (30 June 2022: £750k) and R&D and general expenditure in line with their budget. Cash position remains positive at £1.3m (31 December 2022: £1.9m).

Ocean Harvest Technology Group 12.25p £15.4m (OHT.L)
The Company specialises in researching, developing and selling seaweed and ancillary products, announces its unaudited results for the six month period ended 30 June 2023 (Period). The Company announced a 66% growth in product revenue to EUR1.6m (H1 2022: EUR0.95m), as a result a 150% increase in gross margin to EUR0.56m (H1 2022: EUR0.23m) and the Company is well funded with no external debt and a cash balance of EUR4.8m. The Company raised gross proceeds of £6m in its IPO earlier this year and has expanded its seaweed supply chain in new regions such as east Africa and the Philippines, giving access to materially larger volumes of biomass. The Board has strong visibility over FY24 revenues that support its forecast revenue growth rates.

Reabold Resources 0.095p £9.4m (RBD.L)
The oil & gas investing company with a diversified portfolio of exploration, appraisal and development projects, announces that the Company has agreed to increase its interest in LNEnergy Limited (LNEnergy) by a further 1.6%, through the subscription of 18 new ordinary shares for a cash consideration of £250k, at a price of £13.8k per share, funded from existing cash resources. LNEnergy's primary asset is an exclusive option over a 90% interest in the Colle Santo gas field. The Colle Santo gas field has an estimated 65Bcf of 2P gas reserves, with two production wells already drilled. LNEnergy believes that the field has the potential to generate an estimated EUR11-12m of gross post-tax free cash flow per annum.

Smart Metering Systems 668.5p £891.8m (SMS.L)
The integrated energy infrastructure company owning and managing meters, energy data, grid-scale batteries and other carbon reduction (CaRe) assets, announces its half year results for the six months ended 30 June 2023. Revenue up 26% to £79.3m (H1 2022: £62.7m), as a result underlying profit before taxation up 9% to £11.2m (H1 2022: £10.3m) and net debt increased to £96.3m (H1 2022: net cash of £38.6m). The Company announced an acquisition of the domestic services division of Evergreen Energy on 22 August 2023, specialising in the installation and maintenance of renewable energy assets, for homeowners. SMS continues to build delivery capability, commercial models and pipelines in developing CaRe assets.

Trellus Health 6.25p £10.1m (TRLS.L)
The Company commercialising a scientifically validated and clinically proven personalised self-management solution for chronic health conditions at their intersection with mental health, announces the appointment of Joy Bessenger as Chief Financial Officer in a non-Board capacity, effective from 18 September. Joy has worked for over 20 years with both privately and publicly held life sciences and healthcare companies, with experience across finance, operations, corporate strategy and development, compliance and governance and strategic communications.

12 September 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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