Small Cap Feast

19th January 2023

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Dish Of The Day:

No joiners today.

Aveva Group PLC has left the Premium Segment of the Main Market.

What’s Cooking In The IPO Kitchen?

Celsius Resources intends to join AIM. Currently ASX listed, Celsius is a natural resources exploration and development company principally seeking to explore and develop potential world-class copper-gold assets in the Philippines and a cobalt asset in Namibia. Amount planning to raise and anticipated market cap TBC. Expected late January 2023.

Conviction Life Sciences, a newly established closed-ended investment company managed by Plain English Finance Limited, is seeking to list on Premium Segment of the Main Market of the London Stock Exchange, to invest in a conviction portfolio of life sciences and medical technology businesses, primarily in the UK, Europe and Australasia. The Company will invest in both Publicly Traded and Private companies - c. 70% and c. 20% of the total portfolio value respectively. The Company will target an annualised Total NAV Return of 20% over the long-term. Targeting to raise c.£100m. Delayed to 3rd February 2023.

Breakfast Buffet

Arecor Therapeutics 225p £68.9m (AREC.L)
The globally focused biopharmaceutical company advancing today's therapies, provides a business update for the year ended 31 December 2022. The financial performance was in line with market expectations and the Group closed its financial year with an unaudited cash balance of £12.8m. The Group’s proprietary portfolio of diabetes products continued to progress. Headline results from the second Phase I clinical trial of AT247, a rapid insulin candidate in October 2022, demonstrated faster insulin absorption than current market competitors. The results reinforce the potential of AT247 to enable a fully closed loop artificial pancreas system, a potentially life changing treatment.

Craneware £17.25 £613.1m (CRW.L)
The market leader in Value Cycle solutions for the US healthcare market, issues a trading update for the six months ended 31 December 2022 (H1 FY23). Revenues in H1 FY23 are expected to increase by 6% to approx. $84.7m (H1 FY22: $80.2m) and adjusted EBITDA by 8% to $25.5m (H1 FY22: $23.7m). The ongoing cost control has delivered growth in adjusted EBITDA and the Group expects to deliver full year adjusted EBITDA in line with Board expectations. Cash reserves was $38.6m (H1 FY22: $41.7m), and total bank debt was $107.9m (H1 FY22: $114.6m).

CPP Group 106.5p £9.4m (CPP.L)
The provider of assistance and insurance products announces a trading update for the year ended 31 December 2022. The Board expects revenues from continuing operations to be circa +19% ahead of the prior year (+15% on a constant currency basis). EBITDA from continuing operations is expected to be better than market expectations at circa £6.9m (2021 restated: £7.2m). In October 2022, the Group embarked on a change management programme to exit from legacy operations, address critical IT infrastructure requirements, and migrate towards an InsurTech business led by Blink and supported by CPP India and CPP Turkey. This change management programme is not expected to conclude before the end of the 2025 financial year.

Distribution Finance Capital Holding 36p £64.6m (DFCH.L)
The specialist bank providing working capital solutions to dealers and manufacturers across the UK, announces a trading update for the year ended 31 December 2022. New loan originations hit a record £1bn (2021: £690m). The loan book ended at approximately £440m, up 76% (31 December 2021: £249m), whilst maintaining a strong 6% net interest margin. The Group has grown dealer numbers to 998 (2021: 805). Furthermore the British Business Bank has agreed an initial £175m ENABLE Guarantee, which may also be increased to £350m allowing the Group to scale its loan book.

DXS International* 5p £2.4m (AQSE: DXSP)
The digital clinical decision support company announces its unaudited interim results for the half year ending 31 October 2022. Revenue for the period was marginally up at by 2% £1,652,467 (2021: £1,618,438). Profit/Loss before tax was a loss of (£131,269) (2021: profit £21,427) and profit after tax £27,656 (2021: £137,352). The reduction in profit is owing to increased operational costs and depreciation. Cash on hand was £398,745. Results overall are in line with projections. Numerous trials for new products (mainly ExpertCare hypertension module) are ongoing in clinical commissioning groups. Management is focused on converting these trials to commercial contracts.

Gear4music 117.5p £24.6m (G4M.L)
The largest UK based online retailer of musical instruments and music equipment announces a trading update for the three months to 31 December 2022. UK revenues were affected by continued weak consumer sentiment and consequences of the Royal Mail strikes through December. However, +11% European sales growth reflects successful execution of infrastructure investment during FY22. Gross profit of £12.7m is 6% lower than FY22 Q3. Margins are expected to recover during FY24.

Hotel Chocolat Group 208.5p £286.3m (HOTC.L)
The premium British chocolatier and omni-channel retailer announces Christmas and half-year trading update. UK retail like-for-like sales increased +7% to £74m. Group sales including international fell -9% YOY to £130m. The Company has a strong cash generation: net cash of £31m as of 18th January 2023. The international business in the short term continue to see temporary YOY reductions in revenues from Japan and US. The Group continues to reduce its overhead costs and aims to achieve 20% EBITDA margins by FY25.

Ilika 41p £64.7m (IKA.L)
The pioneer in solid-state battery technology announces its unaudited results for the six months ended 31 October 2022. Total revenue for the period was £0.2m (H1 2022: £0.2m), EBITDA loss £4.1m (H1 2022: £2.7m) owing to increased operational costs. Cash balance at period end was £18.6m (H1 2022: £27.7m). The company is commercializing its thin-film Stereax® miniature solid-state batteries for medical devices and industrial wireless sensors. Among the 21 initial orders for Stereax®, 11 are for implanted medical devices. The company has just signed a memorandum of understanding (MOU) with Cirtec Medical LLC to transfer Stereax manufacturing under license to Cirtec's facility in the US.

Judges Scientific £79.50 £506.4m (JDG.L)
The group focused on acquiring and developing companies in the scientific instrument sector, provides an update for the financial year ended 31 December 2022. Organic order intake was up 0.5% compared with the record performance reached in 2021 and organic revenues increased by 8% compared to 2021. The Group completed its largest acquisition to date, Geotek, for a total consideration of up to £80m in May 2022 as such, the Board anticipates that adjusted earnings per share will be ahead of current market expectations.

Kooth 178.5p £59m (KOO.L)
The UK's leading digital mental health platform announces a trading update for the financial year ended 31 December 2022. Revenue is expected to be within the range of market expectations: £19.6m to £20.2m, driven by growth of more than 15% compared to prior year. Unaudited net cash at year end was £8.5m (FY21: £7.1m) and the Group remains debt free. Kooth is being mobilised to help reduce the burden on acute-need NHS services, including Accident & Emergency attendance by providing the service to adults in need of urgent mental health support. As announced on 13 October 2022, the Group formalised a contract with the to cover 150,000 students in State of Pennsylvania, with the aim of expanding in the state.

19 January 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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