Small Cap Feast

17th August 2023

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What’s Cooking In The IPO Kitchen?

Announced ITF 4 August: Tan Delta Systems plc, a Sheffield based Company intends to IPO on AIM. Tan Delta has developed an innovative and differentiated monitoring solution based on real time oil analysis and analytics that offers equipment operators enhanced insight into the maintenance status of their equipment and thus the ability to reduce maintenance costs, improve reliability and reduce carbon footprint. Anticipated Market Cap £19m. Capital to be raised on Admission: £6.0m via primary proceeds and £0.57m via secondary sale of existing ordinary shares. Admission expected 18 August 2023.

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.

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

Aptamer Group 1.85p £1.5m (APTA.L)
The developer of novel Optimer® binders to enable innovation in the life sciences industry, announces signing of two new contracts with a top five pharma partner valued up to £219k. The final value to be recognised as revenue for these new contracts will be subject to scientific and commercial attrition as the contracts progress, which is scheduled to be completed over the course of the current financial year. The first contract is for the development of an Optimer pair to a neurodegenerative biomarker for use in an immunoassay platform. The second contract is a follow-on contract for the final stage of Optimer development to a neuronal protein target for immunohistochemistry (IHC), following positive results in the earlier stages of Optimer development.

Arecor Therapeutics 190p £58.2m (AREC.L)
The biopharmaceutical group advancing today's therapies to enable healthier lives, announces that it has signed an agreement with a top 10 pharmaceutical company to develop an enhanced antibody formulation for one of its investigational drugs. Under the terms of this agreement, Arecor will use its proprietary formulation technology platform, Arestat™, to develop a novel, stable formulation of a liquid, high concentration antibody. The collaborator will fund the development work, generating new revenue for Arecor. This agreement adds to Arecor's growing portfolio of partnerships.

CT Automotive 40p £29.4m (CTA.L)
The designer, developer and supplier of interior components to the global automotive industry, announces the appointment of Geraint Davies as an Independent Non-Executive Director. Geraint will be joining the Board on 18 September 2023 and will become Chair of the Company's Audit and Risk Committee at the same time. Geraint is a Chartered Accountant with over 30 years' experience as a Partner in the "Big Four" accounting firms, working principally with global businesses in manufacturing, real estate, mining, distribution and financial services.

Gresham Technologies 137.5p £115m (GHT.L)
The software and services company that specialises in data integrity and control, banking integration, payments and cash management, announces a strategic contract win in the asset management industry. One of world’s largest asset managers has selected Gresham’s cloud-based Clareti Control to ensure the integrity of its accounting books and records (ABOR) and its investment books and records (IBOR). On 16 August 2023, the firm, a long-standing customer of Electra which was acquired by Gresham in June 2021, signed a subscription contract with total incremental ARR of USD 0.5m committed for an initial three-year term, with additional one-off fees expected for associated professional services of USD 0.2m. In addition to this, contracts for further additional subscriptions carrying a total ARR of USD 0.1m are expected to be signed with this customer imminently.

Intelligent Ultrasound 11p £36.0m (IUG.L)
The 'classroom to clinic' ultrasound company, specialising in artificial intelligence (AI) software and simulation, announces its unaudited half year results to 30 June 2023. Revenue for the period to 30 June 2023 has grown by 3% to £6.1m (H1 2022: £5.9m). H1 2022 revenue included £1.4m of one-off orders from the NHS in the UK, so on an adjusted like-for-like basis, revenue in H1 2023 increased by 35%. Operating loss increased by £0.2m to £1.5m (H1 2022: £1.3m). Cash at bank on 30 June 2023 was £3.3m (31 December 2022: £7.2m), impacted by working capital seasonality in respect of timing of revenues and receipts of inventory in H1. Cash utilisation in H2 is expected to be materially lower and the Group anticipates reaching profitability with its current cash.

Omega Diagnostics 2.6p £6.2m (ODX.L)
The specialist medical diagnostics company focused on industry-leading Health and Nutrition products, announces the appointment of Carolyn Rand to the Board as an independent Non-Executive Director, with immediate effect. Carolyn is currently also a Non-Executive Director and Audit Committee Chair for AIM-quoted global Technology business PCI-Pal plc, Non-Executive Director and Audit Committee Chair for AIM-quoted global technology business IQGeo Group plc, and Governor of the College of West Anglia.

Robinson 92.5p £15.5m (RBN.L)
The custom manufacturer of plastic and paperboard packaging based in Chesterfield, announces its interim results for the six months ended 30 June 2023. Revenue decreased 4.3% to £24.3m (2022: £25.4m), with cross margin in line with the prior year at 18%. Operating profit reduced to £0.5m (2022: £1.5m) and a loss before tax was £0.9m (2022: profit of £2.8m). Net debt was £9.0m (31/12/2022: £9.2m), after capital expenditure of £1.1m and proceeds on sale of property of £0.7m. A restructuring program was implemented in June, with exceptional costs of c.£0.4m but annual savings of c.£0.7m, of which £0.4m will benefit 2023.

Tanfield Group 3.25p £5.3m (TAN.L)
The UK based investment company provides an update on its investment in Snorkel International Holdings LLC. In 2Q 2023, Snorkel's sales increased by 7.7% to US$50.5m (Q2 2022: US$46.8m) and EBITDA improved to a US$1.6m profit (Q2 2022: US$4.3m loss), due to gross margin up to 13.0% in 2Q 2023 from 2.8% in 2Q 2022. The Board continues to be unaware of the reason behind the gross profit margin improvement from 2022 to 2023 but hopes that its ongoing investigation may provide some further clarification. Tanfield is a 49% shareholder in the equity of Snorkel following the joint venture between the Company and Xtreme Manufacturing LLC. The Snorkel investment is valued at £19.1m. The outcome of the US Proceedings in response to the compliant filed by subsidiaries of Xtreme
could have an impact on this valuation.

Thor Energy 0.225p £5.4m (THR.L)
The uranium and energy metals resource company announces that all approvals have been granted for drilling at its 100% owned Wedding Bell and Radium Mountain Projects, located in the historic uranium-vanadium mining district within the Uravan Mineral Belt, southwest Colorado, USA. The proposed 4,000m program is designed to further advance the uranium and vanadium projects, with drilling along strike of the mineralisation at Rim Rock and Groundhog, targeting airborne uranium anomalies, and to continue assessing the underexplored Section 23 area, where drilling in 2022 confirmed the uranium and vanadium prospectivity of the area. Drilling is scheduled for September 2023, with Contractor Boart Longyear secured.

Windward 42.5p £36.4m (WNWD.L)
The Maritime AI company announces its financial results for the six months ended 30 June 2023. Revenue increased 18% to $12.8m (HY 22: $10.9m). Gross margin increased to 78% (HY 22: 72%), reflecting revenue growth and cost saving actions taken earlier in the year. Adjusted EBITDA loss was reduced to $3.8m (HY 22: loss $5.4m). Cash, cash equivalents and short term deposits totalled $17.9m at 30 June 2023 (31 December 2022: $22.1m). During the period, Windward secured 48 new commercial customers, almost as many as in all of 2022 (53), bringing the total customer count to 174 (up 67% compared to 30 June 2022), showing a significant increase in market share. Second half trading has begun strongly and the Board is confident in meeting market expectations. Management believes Windward has a clear roadmap to achieving positive EBITDA run rate exiting FY2024.

17 August 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


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