Small Cap Feast

1st November 2023

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

Joiners: 
IMC Exploration Group re-joined the Standard Segment of the London Stock Exchange today after a reverse takeover.

Leavers: 
Round Hill Music Royalty Fund has left AIM.





What’s Cooking In The IPO Kitchen?

Tekcapital announced intention to spin off and IPO on 2 October: MicroSalt, the developer of salt-producing technology designed to deliver full flavor with less sodium, announces the launch of an exempt public offer of shares to retail investors for up to £2.5m via PrimaryBid as part of its spin out from AIM listed Tekcapital plc (TEK.L). Microsalt announced revenues of US$0.638m in 2022, its first year of retail sales of SaltMe Crisp brand and Microsalt salt shakers in US based supermarkets and through Amazon US. AIM Admission delayed, expected mid-November.


Breakfast Buffet

Devolver Digital 25.5p £113.4m (DEVO.L)
The digital publisher and developer of indie video games, announces that it has acquired System Era Softworks, Inc (System Era) for a total consideration of up to US$40m by a combination of cash and shares, of which US$22m is due as initial consideration. Established in 2014, System Era is an award-winning, multi-platform video game developer based in Seattle, United States, currently employing 50 individuals. System Era is the developer behind Astroneer, a space-exploration themed, multiplayer sandbox adventure game. System Era generated revenue of approximately US$7m and EBITDA of approximately US$3.8m, in the year to 30 June 2023.

Eckoh 40p £116.2m (ECK.L)
The provider of Customer Engagement Data Security Solutions, announces a trading update for the six months ended 30 September 2023 (H1 FY24). Revenue is expected to be c.£18.8m (H1 FY23: £19.6m), reflecting the loss of a large UK client disclosed in FY23 final results. Whilst this shift to cloud is tempering revenue growth in the short term, it has a positive impact on recurring revenue, which has increased to 83% (H1 2023: 79%) and operating margins at 21%. Adjusted operating profit (ex-forex) is expected to be c.£4.1m, (H1 FY23: £3.5m). Net cash was £7.3m at the end of H1 FY24, up by £1.6m from £5.7m at year end (H1 2023: £4.4m) and no debt. The Company is on track to met profit expectations for the full year.

Hercules Site Services 25p £15.6m (HERC.L)
The technology enabled labour supply company for the UK infrastructure sector, announces that it has secured a new debt facility with IGF Business Credit Limited (IGF) to fund its continued growth and ongoing working capital needs. This is a three-year invoice discounting debt facility for up to £15m and replaces an existing facility of £11m from a previous provider. This facility is available to all the three key areas of the Company's activities: Labour Supply, Suction Excavator Services and Civil Projects which is experiencing increased demand for its services driven by activity in the UK water treatment sector.

One Heritage Group* 18p £7.0m (OHG.L)
The residential developer, development manager and property manager focused on the North of England, announced yesterday its audited results for the year ended 30 June 2023 (FY23). Revenue increased 792% year-on-year to £15.59m, driven by 71 sale completions during the period. Impairment was £1.09m in the period. Loss before tax of £2.14m (FY 2022: loss of £2.13m), due to rising material prices, sub-contractor prices, delays and the cost of debt of selfdelivered projects. Net debt was £16.94m (FY2022: £14.95m). All self-delivered projects will be completed by the end of the current calendar year. Future delivery will be outsourced on fixed priced construction contracts.

Oxford Metrics 90.5p £118.0m (OMG.L)
The smart sensing software company, servicing life sciences, entertainment and engineering markets, announces it has entered into an agreement to acquire Industrial Vision Systems Ltd (IVS), specialists in developing machine vision software and technology for quality control systems. The consideration of £8.1m is to be funded with existing cash resources and new ordinary Oxford Metrics shares. Based in Oxfordshire, IVS reported unaudited revenues of £3.4m and an EBIT of £0.8m in the year ended 28th February 2023.

Poolbeg Pharma* 6.95p £34.8m (POLB.L)
The clinical-stage biopharmaceutical company targeting diseases with a high unmet medical need, announces that it will host a meeting for investors and analysts on the POLB 001 Oncology Programme on Monday 6 November 2023 at 2:00pm - 3:30pm GMT via the Investor Meet Company platform. Poolbeg's POLB 001 Oncology programme targets the Cytokine Release Syndrome (CRS) associated with many cancer immunotherapy treatments. The meeting will be led by Jeremy Skillington, PhD, Chief Executive Officer, and will feature presentations from a number of key opinion leaders and a patient advocate.

Prospex Energy 6.75p £22.2m (PXEN.L)
The investment company focused on European gas and power projects, provide an operational update for the three months ended 30 September 2023 from the Podere Maiar-1 (PM-1) gas facility of the Selva Field. Po Valley Energy has a 63% working interest of the Selva Malvezzi production concession, while Prospex has the remaining 37% working interest. PM-1 commenced gas production on 4 July 2023. Gross quarterly production from the Selva Malvezzi production concession was 5,658,117 scm (2,093,503 scm net to PXEN) and gross revenue for the quarter was EUR 1.9m (EUR 716.7k net to PXEN).

SysGroup 39.5p £19.3m (SYS.L)
The managed IT services, cybersecurity and cloud hosting provider, provides a trading update for the six months ended 30 September 2023 (H1 FY24). The Group is expecting to report revenue of £10.96m (H1 FY23: £11.32m) and Adjusted EBITDA of £1.56m (H1 FY23: £1.68m). Gross cash was £1.98m at the end of HY FY24s (H1 FY23: £4.22m) following payments to satisfy the Truststream year one earn-out, acquisition of 2,076,394 ordinary SysGroup shares (now held in Treasury) and the settlement of the former CEO's contractual terms. Net debt at the end of 1H FY24 was £3.43m (H1 FY23: £1.92m) and excludes future contingent consideration of £1.84m (H1 FY23: £2.93m)..

Various Eateries 28p £24.9m (VARE.L)
The owner, developer and operator of all day club, restaurant and hotel sites in the UK, announces a trading update (unaudited) for the year ended 1 October 2023. Revenues were £45.5m (2022: £40.7m), slightly higher than market expectations and largely driven by new site openings. Group EBITDA (before AIM costs of £0.6m) is expected to be a loss of c.£1.6m. Cash at bank at 1 October 2023 was £1.9m (2022: £9.4m). Looking ahead to FY24, the Company intends to maintain a measured approach to opening new sites.

Wishbone Gold 2.15p £5.5m (WSBN.L)
The AIM and AQUIS dual listed gold exploration company announces results of the pre collar Reverse Circulation (RC) drilling at its Cottesloe Project, which is considered highly prospective for precious and base metals. This announcement follows on from the 18 September announcement and provides further analysis of the RC drilling referred to therein and is a precursor to the Diamond drilling programme. Preliminarily drilling indicates the relevance of Esso's drill data: 0.25% Copper (Cu), 4.6% Lead (Pb), 0.97% Zinc (Zn) 165 g/t Silver (Ag) and 0.26% Cobalt (Co), as announced by the Company on 27th April 2023.

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

STAY INFORMED

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

Disclaimer

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 enquiries@hybridan.com 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