Small Cap Feast

20th July 2023

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Dish Of The Day:

Ora Technology has joined the Access Segment of the AQSE Growth Market.

No leavers today.  

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. Admission was previously meant to be today and is now TBC.

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.

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

Ariana Resources 2.425p £27.8m (AAU.L)
The mineral exploration and development company with gold mining interests in Europe, provides an update on Venus Minerals Limited, in which Ariana has a 58% shareholding. Venus has re-engaged with its advisers and is now actively proceeding with its intention to seek admission to AIM. Venus is proposing to raise up to £3m from new investors, following which Ariana will hold approximately 35% of Venus. Venus is progressing towards an IPO during Q3 2023, with marketing to commence imminently. The IPO will enable Venus to undertake a further exploration programme on its portfolio of 100%-owned copper/gold assets in Cyprus.

Fonix Mobile 210p £209.5m (FNX.L)
The mobile payments and messaging provider, provides a trading update for the year ended 30 June 2023. Revenue and profit have continued to grow and ended the year marginally ahead of market expectations. Gross profit in the Year grew by 14.4% to £15.1m (FY22: £13.2m). Adjusted EBITDA grew by 12.6% to £11.6m (FY22: £10.3m). Fonix continues to generate strong underlying cash flows and intends to pay an increased final dividend in November 2023, in line with the Company's progressive dividend policy to pay out at least 75% of adjusted earnings per share. With high levels of repeating revenue, a strong run-rate entering the new financial year, recent tier 1 wins in the UK and Ireland, the Board continues to be confident in the growth potential for Fonix going into FY24 and beyond.

Gateley Holdings 149.5p £189.3 (GTLY.L)
The professional services group announces the acquisition of Richard Julian and Associates Limited, trading as RJA Consultants (RJA), for total consideration of not more than £6m, including earnout based on the EBITDA achieved in each 12-month period expiring 31 March 2024 and 31 March 2025. In the financial year ended 31 March 2023, RJA generated revenue of c.£3.9m, corporatised profit before tax of c.£0.8m and organic revenue growth of 65% against the prior year. RJA is a chartered surveying practice, providing quantity surveying and project management services across a variety of construction sectors. It specialises in the affordable housing sector, a resilient sector underpinned by high levels of grants to support delivery of the Government's housing targets.

Jadestone Energy 33p £178.5m (JSE.L)
The independent oil and gas production company focused on the Asia-Pacific region, provides a trading update for the half-year ending 30 June 2023. H1 2023 production was c.12,300 boe/d, down 22% year-on-year, primarily reflecting the shut-in of Montara production until late-March 2023 and lower production at the PenMal assets largely due to natural decline. Average oil price realisation was US$86.2, down 21% year-on-year, reflecting the decline in Brent prices. The Group reaffirmed its production, underlying operating cost and capital expenditure guidance for 2023 remains unchanged. The Akatara gas development project in Indonesia is 42% complete and remains on plan, budget and schedule for first gas in H1 2024. East Belumut infill drilling campaign offshore Malaysia is on schedule to commence in August 2023.

Jubilee Metals Group 7.65p £209.5m (JLP.L)
The platinum focused mining and exploration company with operations in Africa, publishes its unaudited Operational Update for the 12 months to 30 June 2023 (FY23). PGM operations recorded 42 474 oz, up 2% and exceeding full year guidance of 38 000 oz. Chrome production was up 7% to 1 289 890 tonnes, exceeding full year guidance of 1 200 000 tonnes. Copper production was 2923 tonnes up 29%,marginally below revised guidance of 3000 tonnes primarily due to previously announced power and water disruptions in Zambia. FY24 outlook is as follows: PGM production stepping up to 42 000 oz. Chrome production is expected to reach a new record of 1 450 000 tonnes, following completion of new 360 000 tonne per annum chrome concentrate facility announced in June 2023. Targeted copper output is to double to 5 850 tonnes of copper, thanks to the upgrade to the Roan concentrator expected over the next 12 weeks.

Metals Exploration 2.15p £45.1m (MTL.L)
The gold producer in the Philippines announces its quarterly results for Q2 2023, with record half-year and quarterly gold sales: H1 2023 46,186 ounces sold at an average realised gold price of US$1,939 per ounce (H1 2022: 30,676 ounces at an average US$1,878 per ounce). H1 2023 free cash flow was US$41.9m (H1 2022: US$13.6m). Net debt as at 30 June 2023 was US$48.3m (31 March 2023: US$69.0m). Operations in H1 2023 have exceeded expectations with head grade, tonnes milled and recovery rates all above forecast. Although the head grade for H2 2023 is forecast to drop, the Company has updated its FY2023 production guidance as follows: gold production forecast: 78,000-81,000 ounces (previous guidance: 68,000-72,000 ounces). FY 2023 updated AISC forecast is US$1,120-US$1,200 per ounce (previous guidance: US$1,250-US$1,300 per ounce).

M.P. Evans Group 673p £361.8m (MPE.L)
The producer of sustainable Indonesian palm oil, announces its crop and production information for the six months ended 30 June 2023. The total crop of fresh fruit bunches (ffb) processed by the Group in the first half of 2023 was 408,100 tonnes, 2% higher year-on-year. Crude palm oil (CPO) production was 166,200 tonnes, up 3% year-on-year. The Group anticipates higher cropping levels as it moves into the second half of the year. The Group realised an average CPO price at mill gate of US$755 per tonne compared with US$1,035 in H1 2022, a decrease of 27%. Prices for PK averaged US$410 per tonne (mill gate), 51% lower than the US$830 per tonne in 2022.

Nexteq 147.5p £98.1m (NXQ.L)
The technology solutions provider to customers in selected industrial markets, provides a trading update for the six months ended 30 June 2023. Group revenue in H1 23 grew 6% to $56.3m. The Group continued to see a recovery in gross margins through H1 23 due to a greater proportion of Densitron sales from higher margin Broadcast products and the continued easing in global supply chains. Net cash position as at 30 June 2023 was $18.5m, up 43% from 31 December 2022 ($12.9m), as working capital levels reduced in line with easing supply chains. The improved operating margins seen in H1 23 are expected to result in full year adjusted profit before tax in line with market expectations.

Pharos Energy 23.1p £99.3m (PHAR.L)
The independent energy company issues a trading update in advance of its interim results on 13 September 2023. Group working interest H1 production was 6,915 boepd net. Group working interest 2023 production guidance of 6,050 – 7,500 boepd net remains unchanged from the preliminary results announcement on 22 March 2023. Group revenue for H1 2023 was $86m, without realised hedging gains or losses. Cash balances at 30 June 2023 was c.$36m and net debt was c.$16m (down from $28.9m at 31 December 2022).

Verici Dx 12.25p £20.9m (VRCI.L)
The developer of advanced clinical diagnostics for organ transplant, announces that further to the RNS dated 2 March 2023, the Company has received compliance authorisation for the operation of its commercial clinical laboratory testing in respect of samples from an additional four US states, including California, with the Company laboratory now fully accredited in a total of 49 states. Verici Dx launched its first product, Tutivia™, for the detection of acute rejection in kidney post-transplant patients, in January 2023 and recently announced the validation of Clarava™, a first-in-class pre-transplant prognosis test for the risk of early acute rejection in deceased donor recipients, which it expects to launch later this year.

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


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