Small Cap Feast

14th September 2023

Dish of the day
No Joiners today
Off the menu
No leavers today
Dish Of The Day:

No joiners today.

No leavers today.

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

Arecor Therapeutics 187.5p £57.4m (AREC.L)
A focused biopharmaceutical company advancing today's therapies to enable healthier lives, announces its interim results for the six months ended 30 June 2023. Revenue increased by 141% to £1.7m (H1 2022: £0.7m); as a result, total income increased by 103% to £2.3m (H1 2022: £1.1m). The Company held cash, cash equivalents and short term investments of £8.2m as at 30 June 2023. Through the remainder of 2023 and into 2024, Arecor Therapeutics expects key data from AT278, achievement of further partnering milestones and continued commercial traction for Ogluo. Trading for the full year remains in line with Board’s expectations.

Checkit 30p £31.3 (CKT.L)
The intelligent operations platform for the deskless worker announces its unaudited results for the six months ended 31 July 2023 (H1 FY24). Annual recurring revenue (ARR) increased year on year by 24% to £12.6m (H1 FY23: £10.2m). The Group revenue increased 19% to £5.7m (H1 FY23: £4.8m) and as a result gross profit increased by 30% to £3.9m (H1 FY23: £3.0m). The Company held cash of £12.8m at 31 July 2023. The Company has increased investment in its data platform over the last year and is now applying the resulting capabilities, testing machine learning models to help managers take proactive steps to improve operational efficiency. The Board is confident of delivering an operating performance ahead of market expectations for FY24.

Churchill China 1325p £145.7m (CHH.L)
The manufacturer of performance ceramic products serving hospitality markets worldwide, announces its interim results for the six months ended 30 June, 2023. Revenue increased by 6.3% to £44.0m (2022 H1: £41.4m), as a result, operating profit increased by 39% to £4.9m (2022 H1: 3.5m) and profit before tax was up 47.1% to £5.0m (2022 H1: £3.4m). The Company held net cash and deposits of £9.9m as at 30 June 2023. Management continues to focus on export to countries where market share is low and the Board is confident in the outlook of profitability.

Cornish Metals 12.88p £74.0m (CUSN.L)
A mineral exploration and development company focused on its South Crofty Tin Project (South Crofty) in Cornwall, releases an updated JORC (2012) Mineral Resource Estimate (MRE) for the South Crofty Tin Project. The focus of this new MRE is the Lower Mine area tin-only section of the Project, as such, the Company announced a 39.0% increase in tonnes and 31.6% increase in contained tin in the Indicated Mineral Resource category from the 2021 MRE and 35.6% increase in tonnes and 15.5% increase in contained tin in the Inferred Mineral Resource category from the 2021 MRE. The majority of new Mineral Resources are contained within the central part of the mine in No. 1, No. 2, No. 3, Main, Intermediate Lodes.

Invinity Energy Systems 41.5p £79.3m (IES.L)
A global manufacturer of utility-grade energy storage, announces that the Company has received the first customer order for its next-generation product, code-named Mistral. Invinity's customer is its Taiwanese strategic partner, Everdura Technology Company (Everdura). A 14.4 MWh vanadium flow battery, comprising a single Mistral array, will now be installed by Everdura at a site in central Taiwan and used to balance the island's electric grid through the provision of Enhanced Dynamic Regulation (E-dReg) services. Invinity expects to ship the order in late 2024. In addition to this order variation, the companies have signed a non-binding Memorandum of Understanding proposing a strategic manufacturing partnership for Invinity products in Taiwan.

Keystone Law Group 467.5p £146.8m (KEYS.L)
The network and tech-enabled challenger law firm, announces its interim results for the six months ended 31 July 2023 (H1 FY24). Revenue increased 14.9% to £42.4m (H1 FY23: £36.8m) as a result, profit before tax increased by 29.3% to £5.3m (H1 FY23: £4.1m). The Company remains debt free with net cash of £11.3m. During the period, the Company generated strong market and recruitment momentum including 144 qualified new applicants (H1 FY23: 122) and 25 new principals joined, increasing the number of principals to 415 (31 January 2023: 398). The Board is confident that FY24 results will be ahead of current market expectations.

LoopUp Group 2.9p £5.6m (LOOP.L)
The cloud platform for hybrid communications, announces its unaudited interim results for the six months ended 30 June 2023 (H1-23). Revenue increased by 84% to £12.2m (H1-22 £6.6m), as a result adjusted EBITDA profit of £2.5m (H1-22 loss of £1.5m). The Company has gross cash at period end of £0.9m and has a net debt of £5.6m. LoopUp was certified onto Microsoft's Operator Connect partner program, and now has Cloud Telephony service availability in 54 countries. The Group is confident of broadly meeting current market expectations for FY23.

Mkango Resources 10.5p £27.3m (MKA.L)
CoTec Holdings Corp. (CoTec) and Mkango Resources Ltd. (Mkango) announces that the two companies have entered into a 50:50 joint venture in relation to the United States roll-out of HyProMag's rare earth magnet recycling technology. HyProMag is 100% owned by Maginito, which is owned on a 90:10 basis by Mkango and CoTec. HyProMag is commercialising rare earth magnet recycling using Hydrogen Processing of Magnet Scrap technology in the UK, Germany and United States, with first production expected in the UK in 2023. CoTec will fund the initial operations of this joint venture (including the costs of the Feasibility Study), with expected funding of £30- £50m during the first three years post completion of the Feasibility Study. Revenue from the US joint venture is targeted for 2025/2026.

Portmeirion Group 285p £39.9m (PMP.L)
The owner, designer, manufacturer and omni-channel retailer of leading homeware brands in global markets, announces its results for the six months ended 30 June 2023. Revenue marginally decreased to £44.1m (H1 2022: £45.5m), loss before tax was £0.1m (H1 2022: profit £1m) and EBITDA was £2.7m (H1 2022: £3.3m). The Company has net debt of £15m but expects to reduce by year end to before FY2022 levels of £10.1m. With the improved productivity in Stoke-on-Trent ceramic factory maintained through ongoing automation programme, FY sales and profit are expected to be in line with consensus market expectations.

Proton Motor Power Systems 8.25 p £128.2m (PPS.L)
The designer and producer of hydrogen fuel cells and hydrogen fuel cell electric hybrid systems, announces its unaudited interim results for the six months ended to 30 June 2023 (H1 2023). During the period, sales were £929k marginally down from prior year (H1 2022: £980k) and order intake was £1.4m (H1 2022: £1.5m). The order book at the period end of £3.8m includes repeat orders from existing customers. The Company completed delivery of 19 fuel cell systems from across its product range to customers and announced a new 13,500m² production facility expected to support scale up of product production capacity.

14 September 2023
*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


Our daily digest of news from UK listed Small and Mid caps straight to your Inbox.


This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.

The information contained in this document is based on materials and sources that are believed to be reliable; however, such information has not been independently verified and therefore it is not possible to confirm such information as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.

The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).

Any and all opinions expressed are current as of the date appearing on this face of this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.

This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.

In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as relevant persons). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.

Neither this document, nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.

Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.

Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.

This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.

MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.

Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.

If you would like to unsubscribe, please email with “unsubscribe me”.

© Copyright 2024 - Hybridan | Website by Boxed Up Media
First Visit
bookcrossmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram