Small Cap Feast

17th July 2023

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What’s Cooking In The IPO Kitchen?

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. Expected Admission 21 July 2023.

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. Expected Admission 20 July 2023.#

Metals One Plc, a company focusing on acquiring natural resources projects with a focus on critical battery metals, including nickel, lithium, cobalt and copper intends to join the AIM Market. The Company will have interests in the Paltamo and Rautavaara projects (nickel, copper, zinc) in Finland (together the Black Schist Project) and the Brownfield Råna Nickel project in Norway (Brownfield Rana Project). These projects represent opportunities to develop deposits of scale, in stable jurisdictions, well situated to supply fastest growing European electric vehicle and energy storage markets. The Company aims to raise £2.5m at 5 pence per share with an anticipated market cap of £10.77m. Expected Admission date is 17 July 2023.

Ora Technology plc, a software company developing a digital carbon trading platform, offering users the ability to buy, sell and retire verified carbon credits in the voluntary carbon market, intends to join the Access Segment of the AQSE Growth Market. Ora’s platform aims to allow access to carbon assets - and the broader carbon economy - with the goal of reducing the complexity of current industry practices, and an emphasis towards providing a simple and intuitive user experience.

Praetura Growth VCT plc, a newly established VCT announces its intention to float on the Main Market of the London Stock Exchange. The Company will provide growth funding to scalable businesses predominantly based in the North of England, across a range of sectors including technology and healthcare. The Company will be managed by Praetura Ventures Limited, a venture capital and EIS business associated with the wider Praetura Group, a Manchester based venture capital investor and small business lender. The Company is targeting to raise £10m at 1 pence per share, via an offer for subscription. The Directors will have the option to utilise an over-allotment facility that will allow the Company to issue a further 10m Ordinary Shares under the Offer.

Breakfast Buffet

Brickability Group 56p £168.2m (BRCK.L)
The construction materials distributor, announces its audited final results for the twelve-month period ended 31 March 2023. Revenue increased by 30.9% to £681.1m (2022: £520.2m) and Adjusted EBITDA increased by 30.4% to £51.5m (2022: £39.5m). Adjusted Profit before tax increased by 28.5% to £44.6m (2022: £34.7m) and the net debt for the Company is £8.0m (2022: net cash £0.4m). The Company announced acquisitions of Modular Clay Products in May 2022, E.T. Clay and Heritage Clay Tile in September 2022, with all acquisitions integrated and contributing to the Group's results. The Board believes that the Company is in a good position to meet stakeholder requirements.

Camellia £57.50 £158.8m (CAM.L)
An agricultural group of companies that produces core crops like macadamia, avocados and tea and specialty crops like wine grapes and blueberries announces the appointment of Byron Coombs as a director and Chief Executive Officer with effect from 25th September 2023. Byron has extensive experience in the financial and investment management sectors and served as Chief Executive Officer of the Group's private bank.

CleanTech Lithium 40.5p £43.1m (CTL.L)
An exploration and development company advancing sustainable lithium projects in Chile for the EV transition, announces an upgraded JORC resource estimate of 1.8 million tonnes of lithium carbonate equivalent (LCE) at a grade of 200mg/L lithium at the Laguna Verde project. This upgrade includes an increase (39%) in the Measured and Indicated resource to 1.1 million tonnes LCE, including a large increase (174%) in the Measured resource. This increase to the Measured and Indicated resource will be used in the Pre-Feasibility Study (PFS) which is currently underway. This study reinforces the project's path to production, capital requirements and will support CleanTech Lithium's engagement with potential strategic partners.

Craneware £15.30 £540.3m (CRW.L)
The developer in Value Cycle solutions for the US healthcare market, provides an update on trading for the year ended 30 June 2023 (FY23). Revenue for the year is expected to be towards the upper end of current market expectations at approximately $174m, a 5% increase over the prior year. Adjusted EBITDA increase of approximately 5% to over $54m which represents an EBITDA margin of 31% (FY22: 31%). The Group maintained strong operating cash balances of $46.9m (30 June 2022: $47.2m) and total bank debt of $83m (30 June 2022: $111.6m). The Board is confident in the Group’s ability to perform and provide to its customers.

Getech Group 9.6p £6.5m (GTC.L)
A locator of subsurface resources, announces the signing of three contracts for Globe, worth together over £0.8m over the next three years, of which £381k relates to the current financial year. These contracts represent significant additions to the Group's existing orderbook, which now stands at £4.2m. Two of these contracts represent a one-year extension of Globe subscriptions for their existing clients: a leading European oil and gas supermajor and a respected global energy company. The third contract marks the introduction of a new client into their portfolio, securing a three-year Globe subscription for an Asian oil and gas company.

Gresham House £10.58 £404.7m (GHE.L)
The specialist alternative asset manager announce that the Boards of Gresham House plc and Seed Bidco Limited (Bidco), a newly incorporated entity formed by funds advised by Searchlight Capital Partners, L.P. and its affiliates (Searchlight) have reached agreement on the terms of a recommended final cash offer for the entire issued and to be issued share capital of Gresham House by Bidco (Acquisition). Each Gresham House Shareholder will receive: 1,105 pence per share in cash and with a entire issued share capital of c.£469.8m. The Acquisition price represents a premium of c. 63% to the closing price of 680p on the 14 July 2023. Searchlight believes that Gresham House has established a robust platform for future growth, underpinned by its track record of delivering strong investment returns for its clients across multiple strategies, asset classes and regions.

Northern Bear* 55.5p £10.4m (NTBR.L)
The provider of specialist building services announces its unaudited preliminary results for the year ended 31 March 2023 (FY23) for the Company and its subsidiaries (the Group). Revenue increased 14.1% to £69.7m (2022: £61.1m) as a result operating profit increased to £2.2m (2022: £0.7m operating loss). Cash generated from operations increased 28.9% to £2.8m (2022: £2.2m) and the Group holds a net cash position at year end of £3.2m (2022: net cash of £2.2m). The Group generated strong operating results during FY23 and has not experienced any slowdown in business to date, despite widely publicised concerns about rising interest rates and their potential effects on the UK economy. As previously announced, the Group will pursue a dividend growth strategy supported by the organic progress of the Group's businesses and, to the extent accretive, bolt-on acquisitions. To that end, the Group announced its intention to declare an ordinary dividend of 4p per share plus a special dividend for FY23 of 1p per share.

Tissue Regenix Group 55.5p £39.0m (TRX.L)
The regenerative medical devices company, provides an unaudited trading update for the six months ended 30 June 2023 (Period). Group revenues are expected to be approximately $14.1m, representing a 19% increase and having announced their first quarter of adjusted EBITDA profitability in the fourth quarter of 2022, the Group expects to achieve a positive adjusted EBITDA for the first half of 2023. In the first six months of 2023, the BioRinse® segment continued its robust growth, while the ongoing commercial reorganisation of the dCELL® segment continued to show benefits, demonstrating strong growth within the Period. Trading is in line with the Board’s expectations.

Tortilla Mexican Grill 82.5p £31.9m (MEX.L)
The largest fast-casual Mexican restaurant group in the UK, provides a Trading Update for the half year ended 2 July 2023 (H1 2023). Group revenue increased by 22.0% to £32.7m (H1 2022: £26.9m). Franchise sites performed well with record sales being achieved in all SSP locations. Further franchise sites in the pipeline to expand on the success. In total, there were 85 sites at end of the Period operating under the Tortilla and Chilango brands (82 at end of FY22). The Group has net debt of £1.6m as at 2 July 2023, in line with expectations. The Board remains confident in the Group's ability to deliver FY 2023 results in line with market expectations.

Virgin Wines UK 29p £16.2m (VINO.L)
One of the UK's largest direct-to-consumer online wine retailers, provides an update on trading for the year ended 30 June 2023 (Period). Total revenue for the year of £59m and adjusted PBT of no less than £0.5m. Virgin Wines maintains a strong balance sheet with net cash of £5.5m and no debt. The Company continued to successfully execute its disciplined strategic approach to customer acquisition during the year, with more than 90,000 new customers acquired during the Period at an average cost per recruit of £12. This was an improvement of 9.2% year-on-year (FY22: £13.22). The Company continues to perform in line with expectations.

17 July 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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