Small Cap Feast

14th May 2024

Dish of the day
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Dish Of The Day:



Whats baking in the oven?

Potential Initial Public Offerings:

7th May: Time To ACT plc, an engineering business focused on technology for the energy transition sector, has announced its intention to seek Admission to trading on the Aquis Stock Exchange Growth Market. The Company reports it is revenue generating, profitable in FY23, with £1.9m cash in the bank at 31st March 2024. The Company's application to the AQSE Growth Market is not conditional on it raising funds. However, the Company is seeking to raise up to £1m of new money to de-risk growth and in support of its strategy of coupling organic growth and acquisition.

Reverse Takeovers:

13th May: Amur Minerals Corporation announced that the Company has executed a sale and purchase agreement to conditionally acquire the entire issued and to be issued share capital of Extruded Pharmaceuticals, a UK-based drug delivery technology company focused on the local delivery of chemotherapy drugs, for an aggregate consideration of £5.5m. The reverse takeover is awaiting the approval of Shareholders at a General Meeting on 29 May.

Change of Market:

Dual Listing :

Banquet Buffet

Angling Direct 36.5p £28.2m (ANG.L)

The fishing tackle and equipment retailer announces its financial results for the twelve months ended 31 January 2024. Revenue increased 10.2% to £81.7m (2023: £74.1m), profit before tax increased 126.8% to £1.5m (2023: £0.7m) and the net cash position increased to £15.8m (2023: £14.1m). The Company saw resilient Q1 trading against an uncertain consumer landscape and sub-optimal weather conditions, but still total Q1 FY25 sales increased 4.0%, achieving growth in the UK and Europe.

Celadon Pharmaceuticals 105p £57.9m (CEL.L)

The pharmaceutical Company focused on the development, production and sale of breakthrough cannabis-based medicines announces its audited final results for the year ended 31 December 2023. Revenue increased to £75k (2022: £24k), the loss before tax decreased to £7.52m (2022: £18.12m) and the cash balance decreased to £1.26m (2022: £5.06m). While the UK market for cannabis-based medicines is still in its infancy, there are signs that it is beginning to mature. The Company remains confident of the medium to long-term sector outlook and the prospects for Celadon within this market.

EnSilica 57p £48.5m (ENSI.L)

The chip maker of mixed signal Application Specific Integrated Circuits announces a pre-close trading update for the year ended 31 May 2024. The Board expects to report record revenues of approximately £25m (2023 £20.5m) and profit after tax of approximately £1.9m (2023: £1.8m). At the end of April cash balances were £1.3m and net debt was £2.1m. During FY 24 £0.9m of debt will have been repaid in line with debt repayment schedules. Looking ahead to FY25, the Board is confident that the Company will continue to improve on its opportunities to capitalise on the significant growth opportunity that exists within the communications, industrial, automotive and healthcare sector.

Gateley (Holdings) 115.5p £152.0m (GTLY.L)

The professional services group announces a trading update ahead of its full year results for the year ended 30 April 2024. Revenue is expected to grow 5.7% to £172m (2023: £162.7m) and profit before tax is expected to be £22.8m (2023: £25.1m). The group maintains a strong balance sheet with net cash of £3.3m (2023: £4.3m), net of in-Period investment in acquired and organic opportunities to generate future growth and supporting the employee benefit trust with its recent purchase of shares.

Newmark Security 102.5p £9.6m (NWT.L)

The provider of electronic, software and physical security systems announces an update on trading for the year ended 30 April 2024. The group expects to report robust year-on-year revenue growth with revenues of not less than £22m (2023: £20.3m) and a cash position of £1.1m (2023: £0.6m). The combination of increased cross-selling to existing customers and new blue-chip customer wins contributed to the strong second half.

OPG Power Ventures 11.6p £46.6m (OPG.L)

The developer and operator of power generation plants in India announces a trading update in respect of the full year ended 31 March 2024. Subject to audit, the Company expects to report FY24 revenues, EBITDA of no less than £160m and £16m respectively and net debt of approximately £12m (2023: £16.1m). During FY24, with profitable revenue generation and continued deleveraging, the Company has significantly strengthened its balance sheet and liquidity position which provides OPG with the financial strength and latitude to pursue new growth opportunities in energy transition.

Pennant International Group 27p £10.0m (PEN.L)

The systems support and training solutions Company announces the following update. Trading in the year to date has been in line with the Board's expectations although the Group has incurred exceptional, non-recurring costs of circa £0.3m in relation to aborted corporate activity. Management's assessment is that the Group's key markets are starting to see a significant increase in activity, and in response to customer tenders and requests for proposals, the Group has quoted on over £32m of new business opportunities during the last six months.

Prospex Energy 5.7p £18.8m (PXEN.L)

The Company that invests in energy projects with a focus on Europe announces its audited Final Results for the year ended 31 December 2023. The Company recorded a loss for the year of £1.23m (2022: profit: £7.14m ). This was caused by the re-adjustment of commodity prices to more normal levels, following the unsustainable and inflated high prices of 2022 attributable to the commencement of the Russian-Ukraine conflict. Revaluation of investments at fair value lead to a reduction of 2.9% to £15.59m (2022: £16.06m) and the unrealised loss of £469k (2022: gain £9.37m). The Company is now debt-free, self-sustaining on a business-as-usual basis, and in a much stronger financial position than it was at the end of the prior year.

Various Eateries 21.5p £37.6m (VARE.L)

The owner, developer and operator of restaurant, clubhouse and hotel sites in the UK announces an update on trading for the 26-week period ending 31 March 2024. Revenue in the period grew 10.2% to £22.7m (H1 2023: £20.6m) and cash was £7.2m (H1 2023: £3.1m). Trading at the start of the second half has been resilient, despite the uncharacteristically wet weather, and management is optimistic ahead of the important summer trading months.

Zytronic 52.5p £5.3m (ZYT.L)

The manufacturer of touch sensors announces its consolidated interim results for the six months ended 31 March 2024. Revenue decreased to £3.3m (2023: £4.7m), the loss before tax decreased to £0.6m (2023: £0.9m) and the net cash position decreased to £3.7m (2023: £4.7m). A core objective remains the return to positive cash generation and growth over the medium term. While it is too early to call this the start of a sequence of recovering quarters, it does give some grounds for optimism while the Company undertakes a formal business and operational review process.


14 May 2024
*A corporate client of Hybridan LLP or retained by Hybridan LLP for certain services
** Arranged by most recent first
*** Alphabetically arranged
**** Potential means Intention to Float (ITF) has been announced, or it is a rumour


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