Small Cap Feast

1st August 2023

Dish of the day
No Joiners today
Off the menu
No leavers today
Dish Of The Day:

No joiners today.

Cineworld Group (CINE.L) has left the Premium Segment of the Main Market.

What’s Cooking In The IPO Kitchen?

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

Barkby Group 3.25p £4.7m (BARK.L)
The Company engaged in real estate development, consumer and hospitality businesses, and life sciences announces that it has completed the disposal of Workshop Trading Holdings Limited, trading under the Workshop Coffee brand by way of a management buyout (MBO). The disposal follows the strategic update provided in July 2022, in which the Company announced its intention to focus on real estate and dispose of non-core businesses. The sales process concluded that the MBO offered the best value for Barkby. The MBO transaction includes the transfer of £1.7m of third-party liabilities, the repayment of £0.2m of intercompany lending and £0.3m of deferred consideration payable in cash in June 2024. Barkby intends to utilise the proceeds of the disposal for general working capital purposes.

Digitalbox 6.5p £7.7m (DBOX.L)
The mobile-first digital media business, which owns Entertainment Daily, The Daily Mash, The Tab, and The Poke announces it has exchanged contracts to acquire the digital assets of 99 Problems, Student Problems and The Life Network Shopping from Media Chain Group Limited (part of Social Chain AG) for a total consideration of $800k. $79k is payable immediately on Exchange as a non-refundable deposit to trigger the license term through a single $1k fee, and a further $720k payable on completion, which is anticipated to be within two to five months from the date of Exchange, through a deferred payment of $520k in cash and $200k in Digitalbox ordinary shares. The Consideration will be funded from the Group’s existing cash resource, which at 28 July 2023 was approximately £2.4m. The Acquisition is subject to completion of satisfactory testing by Digitalbox, through a licence agreement which is in operation until the end of November 2023 and is expected to be immediately earnings enhancing on completion.

Engage XR Holdings 3.6p £18.9m (EXR.L)
The Metaverse/ Spatial Computing technology company provides an update on trading for the six months ended 30 June 2023. The Group continues to trade in line with market expectations. Group revenue is expected to be c.EUR 2.1m, an increase of 18% (H1 2022: EUR 1.8m) and gross margin in H1 2023 was 93%, an increase of 12% (H1 2022: 81%). Cash balance at 30 June 2023 of EUR 9.4m (30 June 2022: EUR 4.9m) as the Group's cash position strengthened following a EUR 10.5m fundraise in February 2023. The Group is gaining traction in the US market. 54% of revenue in H1 2023 has been derived from North America compared to 30% for FY22, following the deployment of the US sales team in mid-2022.

Hargreaves Services 439p £142.9m (HSP.L)
The diversified group delivering services to the industrial and property sectors, announces the appointment of Stephen Craigen as Group Finance Director Designate and as a Director of the Board of Hargreaves, effective 1 August 2023. Stephen has been with the Group for 10 years and has held the role of Group Financial Controller since 2017. John Samuel, the current Group Finance Director, will step down from his role and the Board following the announcement of the Group’s preliminary results for the year ended 31 May 2023, expected to be on 9 August 2023.

ProBiotix Health 8p £8.52m (AQSE:PBX)
The life sciences business developing probiotics to tackle lifestyle conditions such as cardiovascular disease, announces that it has signed an exclusive distribution agreement with Trans Chem to cover the Australian and New Zealand probiotics market. Trans Chem is one of Australia’s leading independent suppliers of innovative products and quality raw ingredients for the pharmaceutical, nutraceutical, food and beverage, veterinary and animal nutrition industries. The Directors believe that Trans Chem is a strong and creditable company, winning ‘Prestigious Quality Material Supplier of the Year’ awarded by the Complementary Medicines Australia (CMA) in 2016, 2019 and in 2021.

Oriole Resources 0.15p £4.3m (ORR.L)
The exploration company focussed on West Africa, announces a conditional subscription to raise £1.76m through the issue of 930m new ordinary shares at a price of 0.19 pence to institutional investor Lanstead Capital Investors L.P. The Issue Price of 0.19 pence represents a 21% premium to the closing mid-market price on 31 July 2023. Gross proceeds of the Lanstead Subscription will be pledged to Lanstead by the Company pursuant to a Sharing Agreement with Lanstead. The Sharing Agreement, entitles the Company to receive back those proceeds on a pro rata monthly basis over a period of 24 months, subject to adjustment upwards or downwards each month depending on the Company's share price at the time relative to the Benchmark Price of 0.2533 pence per share. The monthly settlement amounts for the Sharing Agreement are structured to commence approximately 6 weeks following Admission. Immediately following completion of the Subscription, Lanstead will hold a 26.23% interest in the Company.

Symphony Environmental Technologies* 7.5p £13.9m (SYM.L)
The global specialists in technologies that make plastic and rubber products "smarter, safer and sustainable", announces a trading update for the six months ended 30 June 2023 (H1 2023). Group revenue increased to £3.6m (H1 2022: £3m) and Gross profit margins increased to over 42% (H1 2022: 36%). Distribution costs have sharply reduced to circa 3% of revenues (H1 2022: 7%). The Company report a positive turnaround in revenues and sharply improved operating margins for the Group compared to 2022. Whilst a loss will be reported for H1-2023, it will be significantly lower than for the same period last year. The Board expect Symphony will move back into profitability on the back of momentum started during H1 2023 together with the near-term commercialisation of several key projects. These expectations do not take into account Symphony’s joint venture in India.

Virgin Wines 34p £19.0m (VINO.L)
The direct-to-consumer online wine retailers, provides an update on trading for the year ended 30 June 2023. Performance during the Period was in line with expectations, with total revenue for the year of £59m, adjusted PBT of no less than £0.5m and net cash of £5.5m with no debt. 90,000 new customers were 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). Conversion and cancellation rates also trended positively throughout Q4, while customer deposits into WineBank achieved a seasonal high of £8m at the year-end. As previously announced, the Company continues to develop a number of new initiatives focused on accelerating its strategic development, which it expects to complete during H1 2024.

Wishbone Gold 2.43p £4.8m (WSBN.L)
The gold and precious metals exploration company with assets in Australia announces it has raised £1.42m gross at a price of 2.4 pence per share and will be issuing a total of 59,059,997 new ordinary shares. This represents a 19% discount to the closing mid-market price on 31 July 2023. The net proceeds will provide additional working capital for the Company but will primarily be used to fund the exploration programs on Red Setter and Cottesloe.

Zytronic 95p £9.7m (ZYT.L)
The North-East of England based innovator and specialist manufacturer of touch overlay sensors for interactive displays used in self-service, gaming, and industrial applications, announces it has appointed Dr. Christopher (Chris) Potts as Non-executive Chairman with immediate effect. Mark Butcher is relinquishing his temporary role as interim Non-executive Chair, but continuing to serve as an independent Non-executive Director. Chris brings over 20 years of senior executive and chair experience of international technology businesses. He is presently Chair of Guralp Systems Ltd. Chris's experience includes managing privately owned firms, private equity backed businesses and divisions of listed public companies.

1 August 2023
*A corporate client of Hybridan LLP or retained by Hybridan LLP for certain services
** Arranged by most recent first
*** Alphabetically arranged


Our daily digest of news from UK listed Small and Mid caps straight to your Inbox.


This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.

The information contained in this document is based on materials and sources that are believed to be reliable; however, such information has not been independently verified and therefore it is not possible to confirm such information as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.

The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).

Any and all opinions expressed are current as of the date appearing on this face of this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.

This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.

In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as relevant persons). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.

Neither this document, nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.

Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.

Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.

This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.

MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.

Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.

If you would like to unsubscribe, please email with “unsubscribe me”.

© Copyright 2024 - Hybridan | Website by Boxed Up Media
First Visit
bookcrossmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram