Small Cap Feast

15th February 2024

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Dish Of The Day:



Whats baking in the oven?

Potential Initial Public Offerings:

12 January: The London Tunnels PLC announces its intention to seek Admission to the Standard Segment of the Official List and to trading on the Main Market of the LSE. The Company plans to restore, adaptively reuse and bring back to life the Kingsway Exchange Tunnels in Central London, originally built in the early 1940’s, and designed to shelter people during the London Blitz. The Company has successfully raised approximately £10m from investors and aims to admit its Ordinary Shares at a price of £2.00 per share to the Main Market. The Company is expected to have a market capitalisation of approximately £123m on Admission. Delayed: Expected Admission was before the end of January 2024.

Reverse Takeovers:

30 January: Location Sciences Group Plc is proposing to acquire the entire issued share capital of Sorted Holdings Limited (Sorted) for a nominal consideration of £1.00 (Acquisition). Sorted operates a software-as-a-service (SaaS) business model providing delivery experience software which serves ecommerce retailers - from large, global enterprises to smaller, independent start-ups. Pursuant to Rule 14 of the AIM Rules for Companies, the Acquisition constitutes a reverse takeover. Capital to be raised on Admission is approximately £2.0m via a subscription for new Ordinary Shares. Anticipated market capitalisation on Admission is approximately £6.68m. Expected AIM Admission date is 19 February 2024.

Change of Market:

Banquet Buffet

CMO Group 23.5p £16.9m (CMO.L)

The UK's largest online only retailer of building materials and products has expanded its offering with the launch of Landscaping Superstore. The new superstore provides DIY and professional trade customers with quick and convenient access to over 6,000 different products for all aspects of garden design and maintenance. The new Landscaping Superstore becomes CMO's ninth online store, following the successful introduction of gardening and landscaping ranges to CMO's existing Drainage Superstore.  

Crossword Cybersecurity* 5.5p £5.2m (CCS.L)

The cybersecurity solutions Company focused on cyber strategy and risk announces the signing of a Partnership Agreement with TD SYNNEX (NYSE: SNX), a global leader in IT solutions and distribution. Crossword's Trillion platform will become available through TD SYNNEX's extensive community of small and medium-sized resellers across Europe. Crossword and TD SYNNEX will also be working in collaboration with ongoing onboarding and support services across the UK and Europe. Trillion is a Threat Intelligence platform that continuously tracks, correlates and analyses billions of stolen user credentials and threat actor exchanges. The platform provides the ideal solution for MSPs and partners looking to protect end user data at scale.

DSW Capital 49p £10.7m (DSW.L)

The profitable, mid-market, challenger professional services licence network and owner of the Dow Schofield Watts brand announces a  trading update for the year ending 31 March 2024 (FY24). Network revenue for January was substantially below expectations and in February, the Group has been advised of both slippage to some previously anticipated deal revenue and, to a lesser extent, deal aborts. The Group now anticipates FY24 adjusted pre-tax profit to be in the range of £0.6m to £0.7m. The Group remains profitable and maintains a healthy cash balance of £2.7m at 31 January 2024, following the £0.2m dividend payment in that month. 

Poolbeg Pharma*  10.35p  £51.8m (POLB.L)

The biopharmaceutical Company focussed on the development and commercialisation of innovative medicines targeting diseases with a high unmet medical need, announces that Cathal Friel, Co-Founder, substantial shareholder, and currently Non-Executive Chairman, is assuming the role of Executive Chairman effective immediately. Cathal will continue to work closely with CEO Jeremy Skillington and the now expanded leadership team, several of whom have recently joined from Amryt Pharma. Meanwhile, the Remuneration Committee has approved the adoption of an Employee Performance Incentive Plan for key senior management, to align medium and long term objectives with those of shareholders and to encourage retention.

Premier African Minerals 0.2875p £77.4m (PREM.L)

The mining Company that explores, evaluates and develops mineral properties focused mainly in tungsten, lithium and tantalum, nickel and rare earth elements, announce a subscription to raise £2.475m on before expenses at an issue price of 0.275 pence per new ordinary share for the Zulu Lithium and Tantalum Project (Zulu). The proceeds will be used specifically for direct operating expenses at Zulu, including final payments related to the thickener purchase and installation; final payments related to the ball mill and associated hydrosizers, transport and installation; plant operating spares and reagents; mining cost and operating expenses including diesel.

Quadrise 2.105p  £32.9m (QED.L)

The supplier of innovative energy solutions for a cleaner planet announces the signature of a Project Development Agreement with renewable biofuels specialists, BTG Bioliquids BV (BTL) and Euthenia Energy Group Limited (Euthenia). As announced on 8 June 2023, Quadrise and BTL entered into a Joint Development Agreement  to investigate the use of BTL's fast pyrolysis bio-oil (FPBO) as a potential cost-effective renewable feedstock for Quadrise's bioMSAR solution. Building on this success, Quadrise and BTL have signed the PDA with Euthenia, who will process ligno-cellulosic biomass feedstock at their facilities in Spain using BTL's FPBO and fractionation technologies, with the extracted sugars blended into Pyrolytic bioMSAR to provide sustainable marine fuel.

Renalytix 31.5p £31.5m (RENX.L)

The artificial intelligence-enabled in vitro diagnostics Company reports financial results for the six months ended December 31, 2023. Revenue was $1.2m related to sales of KidneyIntelX, down by $0.8m year-on-year mainly due to a $1.0m decrease in billable testing volumes as a result of the transition to a commercial billing structure. Administrative expenses for the six months ended December 31, 2023 were $18.4m, compared to $22.4m for the six months ended December 31, 2022. Net loss was $19.3m during the period, compared to a net loss of $22.6m for the six months ended December 31, 2022. Cash and cash equivalents totaled $5.6m as of December 31, 2023.

Sareum* 42.5p £29.9m (SAR.L)

The clinical-stage biotechnology Company developing next generation kinase inhibitors for autoimmune disease and cancer, announces the completion of the single ascending dose (SAD) part and the food effect study of its Phase 1a clinical trial for the lead programme SDC-1801. The multiple ascending dose study is ongoing and full safety data from the Phase 1a clinical trial are expected to be available during the first half of 2024. If the results are satisfactory and subject to financing, regulatory requirements, and recruitment preparations, the Company plans to initiate a Phase 1b clinical study. The goal is to recruit up to 24 psoriasis patients, with the study expected to be completed by the end of 2024.

Tortilla Mexican Grill 39p £15.1m (MEX.L)

The UK's largest fast-casual Mexican restaurant brand has confirmed Uber Eats and Just Eat as its delivery partners, following a review of the brand's delivery strategy to strengthen the relationship between fewer partners. The Group delivered more than 1.5m mains [we assume main meals] across Uber Eats, Just Eat and Deliveroo in 2023 but delivery commission charges have challenged margin performance. Uber Eats UK had the highest order growth in the industry in 2023, with Gross Bookings up nearly 20% year-over-year.

Water Intelligence 380p  £66.0m (WATR.L)

The multinational provider of precision, minimally-invasive leak detection and remediation solutions for both potable and non-potable water provides a trading update for the year ended 31 December 2023. The Group is trading in-line with market expectations and has started 2024 well it said. FY23 revenue grew 7% to $76.0m (FY22: $71.3m). Statutory profit before tax increased 13% to $6.2m (FY22: $5.5m).  At 31 December, the Group had cash of $15.8m and the total debt (including deferred payments for acquisitions) of $22.8m. The Group's capability to deploy capital is expected to increase during 2024. In December 2023, the Group announced that it had increased its acquisition line of credit with M&T Bank by $5m.  


15 February 2024
*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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