Small Cap Feast

19th 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 £10.72m. Expected Admission date is 27 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. Expected Admission 20 July 2023.

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

Audioboom 211p £34.6m (BOOM.L)
The global podcast company, announces its unaudited half-year results for the six months ended 30 June 2023. H1 revenue of US$31.8m (H1 2022: US$40.9m), predominantly reflecting the loss of the Morbid podcast which left the network in May 2022. Adjusted EBITDA profit of US$0.3m (H1 2022: US$2.0m) and the Company holds cash of US$5.3m with a further US$1.9m available via an undrawn overdraft. New partnerships launched during H1 2023 in Audioboom's creator network. Q2 revenue increased 6.5% on Q1 2023 to US$16.4m (Q1 23: US$15.4m). Audioboom will continue to refine and adapt its model as it as moves back into a positive growth phase.

Faron Pharmaceuticals 276p £182.5m (FARN.L)
A clinical-stage biopharmaceutical company focused on tackling cancers via novel immunotherapies, announces new positive clinical data from the Company's ongoing Phase I/II BEXMAB study. Three of five patients in 6 mg/kg bexmarilimab + azacitidine doublet dosing cohort showed an objective response (OR) of complete remission of blasts in the bone marrow. From the observed three out of five patients, one patient also achieved a complete recovery of blood counts. Eight of 15 ORs were observed across all three doublet dosing cohorts. Faron plans to seek FDA advice during the Q3 2023. It also expects to advance to the Phase II part of BEXMAB in the H2 2023.

GENinCode 12.25p £11.7m (GENI.L)
The predictive genetics company focused on the prevention of cardiovascular disease, announces its collaboration with MedStar Health, a ten-hospital health system in the Washington, D.C. area, to use its CARDIO inCode-Score® (CIC-SCORE) test in primary care for the risk assessment of coronary heart disease. Results of the CIC-SCORE test will be combined with the standard American College of Cardiology Atherosclerotic Cardiovascular Disease Risk Calculator to identify patients who could benefit from earlier preventive treatment. The collaboration with MedStar represents the first major US institution to begin clinically assessing CIC-SCORE, forming part of the Early Access commercial programme now underway.

MediaZest* 0.053p £0.7m (MDZ.L)
The audio-visual solutions provider, provides the following trading update. Progress in the second half of the financial year ending 30 September 2023 has been promising, with significant new business wins with both new and existing clients. The Group has recently achieved new business wins in multiple EU countries which will generate revenue in excess of EUR500k. In the UK, the volume of client work has also continued to grow with new projects for several existing clients including Pets at Home, Hyundai, HMV and Lululemon all being delivered in the second half of the current financial year. The Board remains confident that the outlook for the second half of the financial year is encouraging and expects to report improved financial results relating to the period in due course.

NWF Group 262.5p £129.7m (NWF.L)
The distributor of fuel, food, and feed across the UK, announces a bolt-on acquisition within its Fuels division. NWF has acquired the trade and assets of Geoff Boorman Fuels from Geoff Boorman Fuels LLP. Geoff Boorman Fuels is a 19 million litre fuel distributor based in Edenbridge, Kent with a largely domestic customer base. The acquisition supports the Group's development in the South-East and expected to be accretive to underlying earnings of the Group. The £2.6m consideration has been paid in cash on completion from NWF's existing cash resources. This is in line with the Group's strategy to grow the fuels distribution business, in which the Group is the third largest player in the UK.

Pebble Beach Systems Group 6.63p £8.3m (PEB.L)
A global software business in the playout automation, content management and IP Control solutions for the broadcast and streaming service markets, provides a trading update for the half-year ended 30 June 2023. The Group expects to report revenues of c£5.5m (H1 2022: £5m), a growth of 9%. EBITDA margin is marginally down at 23% (H1 22: 26%) and net debt continues to reduce by 18% to c£5.1m (H1 2022 £6.3m). The Board expects a stronger second half with further progress in the Group’s revenue and EBITDA growth.

Personal Group Holdings 191p £59.7m (PGH.L)
The workforce benefits and services provider, provides the following update on trading for the six-month period ending 30 June 2023 (HY23). Total revenue for the six months to 30 June 2023 increased 34% to £46.4m (HY22: £34.7m), driven primarily by voucher resales. Adjusted EBITDA increased 75% to £2.7m (HY22: £1.5m) and the Company holds a cash position of £22.6m with no debt. The Group announced 52 new client wins (HY22: 52) and the award of a place on the Crown Commercial Services framework. The Board remains confident that trading for the full year remains in line with market expectations.

Skillcast Group 20p £17.9m (SKL.L)
The provider of content and technology for digital compliance transformation, announces a trading update for the six months ended 30 June 2023. The Group expects to report revenues of £5.2m, a 16% increase (H1 2022: £4.5m). ARR increased 26% to £8.0m (June 2022 ARR: £6.3m) and the Group has no debt with cash in bank of £7.6m. In March 2023, the Company launched its Global Risk and Global Compliance libraries and, in April, it launched a Compliance Bites library. Its historic average contract value has been c.£5k, however both recent client wins have annual revenues of over £70k each. The Group is on track to return to profitability in future periods and remain confident about achieving full year growth expectations for 2023.

Springfield Properties 67p £79.4m (SPR.L)
A housebuilder in Scotland focused on delivering private and affordable housing, provides an update on trading for the year ended 31 May 2023. Full year 2023 revenue is expected to be approximately £330m, representing year-on-year growth of 28%. The Company has high-quality land bank of c. 16,300 plots at 31 May 2023, with over half having planning permission. The gross development value at year end was c. £3.5bn. The Company reduced net debt to £68m (30 November 2022: £73.7m). Profit before tax for 2023 is expected to be in line with market expectations.

Watkin Jones 46.98p £120.5m (WJG.L)
A UK developer and manager of residential for rent, provides a trading update for the year ending 30 September 2023. If the Company does not complete any new forward sales in the balance of the year, it does not expect to materially improve on the Underlying PBIT recorded in H1 of £2m. The Company’s current expectation is that challenging market conditions will persist into FY24, and the FY24 PBIT is likely to be in the range of £15m to £20m. The Company further announces that Richard Simpson has stepped down from his role as Chief Executive Officer. The Board has asked Alex Pease, the Group's Chief Investment Officer, to take on the role of Interim Chief Executive, with effect from 19 July 2023, whilst a formal process is undertaken to confirm a permanent CEO appointment.

19 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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