Small Cap Feast

20th January 2023

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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

Allergy Therapeutics SUSPENDED (AGY.L)
The fully integrated commercial biotechnology company specialising in allergy vaccines, provides a trading update for the six months ended 31 December 2022. The Group expects revenue to be £39.9m (2021: £48.7m) a reduction of 18%. This decrease is primarily due to the previously announced voluntary short-term pause in production and strategic streamlining of older products in the portfolio. The cash balance was £15.2m (30 June 2022: £20.5m). Pursuant to the subscription and debt financing announced on 29 September 2022, the Company received £7m from the issue of new ordinary shares and expects to receive £10m from the issue of loan notes on 28 February 2023. The Group expects sales to continue at a similar level compared to last year, before recovering in the next financial year.

Big Technologies 267.6p £776.8m (BIG.L)
The UK-based remote people monitoring technology company, issues a trading update of the full year results ended 31st December 2022. The Group has accounted for revenue expected to be approximately £50m (2021: £37.6m) and adjusted EBITDA to be in excess of £30m (2021: £20.6m), marginally ahead of current market expectations. Net cash (stated prior to lease liabilities of £0.7m) increased to £67.5m. The Group expects further revenue growth and increase market share to scale-up business operations.

DSW Capital 91p £20m (DSW.L)
A profitable, mid-market, challenger professional services licence network announces a trading update. The second half to 31 March 2023 (FY23) is being impacted by macro-economic uncertainties, and as such the Board believes the Group will not achieve current market expectations. The Board revises its financial guidance for the year ending FY23, with network activity levels in FY23 expected to be broadly similar to FY22, revenue is expected to be between £2.8m-£3.1m (FY22: £3.0m) and expected EBITDA between £1.4m-£1.7m (FY22: £2.2m). At 31 December 2022, the Group held cash balances of £4.8m. The Board continues to evaluate opportunities to grow through diversification and expansion of new service lines.

Gresham House 750p £287.1m (GHE.L)
The specialist alternative asset manager committed to sustainable investing, provides an update on recent activity across a range of asset classes supporting regional prosperity. Portfolio Company, Wildanet, has been awarded new contracts worth £36m to connect c.20,000 hard-to-reach homes and businesses in South West and Mid Cornwall. Baronsmead Venture Trust and Baronsmead Second Venture Trust managed by Gresham House, has raised £17.3m in the first 10 days of this latest fundraise. Gresham House Residential Secure Income LP has agreed a £40m deal with Countryside Partnerships, to fund 167 new affordable homes in Chippenham, Wiltshire.

Mirriad Advertising 5.2p £14.5m (MIRI.L)
The UK based company has been developing the market for in-content advertising in the US by building commercial partnerships on the supply-side, provides a trading update. The Company confirmed that revenue for the financial year to 31 December 2022 (FY 2022) was £1.51m. Revenues pivoted from China to the US over the last 2 years with US revenue increasing from 14% of total revenue for FY 2020, to 44% in FY 2021 and 78% in FY 2022. As at FY 22 the Company had £11.3m of cash on its balance sheet, ending the year in a better position due to tight and ongoing efficiency measures. The Board expects that with the appropriate funding the Company is on track to deliver its growth strategy and roadmap for the future.

TruFin 59p £55.6m (TRU.L)
The software and niche lending solutions business provides a trading update for 12 months ended 31 December 2022. Revenues for the 12 months are expected to be £16.0m (FY21: £13.1m), representing year-on-year growth of 22%. This has predominantly been driven by revenue growth of more than 350% at Satago and over 25% growth at Oxygen Finance Group ltd. The Adjusted Loss Before Tax is expected to be in line with market expectations at no more than £8.1m (FY21: £8.4m). The Company ensures it is well positioned to achieve another profitable growth during 2023.

San Leon Energy 35.05p £157.7m (SLE.L)
The independent oil and gas production, development and exploration company focused in Nigeria, notes the announcement made on 19 January 2023 by Decklar Resources Inc. (Decklar) in Canada. San Leon has a 11% shareholding in Decklar Petroleum Limited (DPL), the local subsidiary of Decklar operating in Nigeria, and has also made a US$5.5m loan to DPL, via 10% per annum unsecured subordinated loan notes. Decklar and Millenium (co-venturer) have now increased production from the Oza Oil Field to a total rate of approximately 1,300 barrels of oil per day (bopd) following the restart of production at approximately 900 bopd from the Oza-1 well and new production at approximately 400 bopd following minor repairs to the Oza-4 well. With continued production and delivery of crude oil it is expected that regular billing and receipts of sales proceeds will occur.

Spirent Communications 230.7p £1,411.3m (SPT.L)
The leading provider of automated test and assurance solutions for next-generation devices and networks, today issues a trading update for the financial year ended 31 December 2022. The Group delivered their full year results in line with expectations. Full year revenue grew by 5.5% to $607m and is expect to deliver an adjusted operating profit slightly ahead of market consensus. The Group's cash position closed at $210m and are positioned to deliver further strategic and operational progress. The Group continue to invest in leading technology solutions across our portfolio.

Vela Technologies 0.018p £2.9m (VELA.L)
An AIM-quoted investing company focused on early stage and pre-IPO disruptive technology investments, announces that the Company has invested £49k in Ethernity Networks Ltd through the purchase of 700k ordinary shares. Vela's investment is part of a placing for Ethernity that raised £1.55m (before expenses). In addition, Ethernity raised £0.1m by way of a broker option, as announced by Ethernity on 19 January 2023.

4imprint Group £46.03 £1,292.6m (FOUR.L)
The international direct marketer of promotional products provides a trading update. The Group’s revenue for 2022 was approximately $1.14bn, an increase of 45% ($350m) compared to $787m in 2021. Profit before tax is expected to push the analysts' forecasts, to over $100m. The unaudited net cash balance at the 2022 year-end was $86.7m, (2021: $41.6m), leaving the Group well-funded entering the 2023 financial year. The Board is content with the Group's progress in 2022, which reflects clarity of strategy and the business model. The Group enters 2023 in a strong hold.

20 January 2023
*A corporate client of Hybridan LLP

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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.

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