Small Cap Feast

14th 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


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

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