Small Cap Feast

21st July 2023

Dish of the day
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Off the menu
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Dish Of The Day:

Joiners: 
No joiners today.

Leavers: 
Star Phoenix Group (STA.L) has left AIM.

Off The Menu:

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

Black Sea Property SUSPENDED (AQSE:BSP)
The Bulgarian real estate investment company, announces that it has signed an agreement to acquire 98.27% of Grand Hotel Varna AD. Grand Hotel Varna AD wholly owns GHV-Dolphins EAD, a Bulgarian company which holds the title to real estate comprising three hotels and a beach marina resort, situated in a prime location on the Black Sea Coast. The consideration payable for the Acquisition is EUR28m in cash, of which an initial non-refundable deposit of EUR1.6m was paid upon signing of the agreement. The property assets being acquired have been independently valued at EUR19m, and the mutual fund portfolio is currently valued at EUR12m. To satisfy the balance of the consideration, the Company will need to raise additional funds. The Acquisition is expected to be completed by 30 October 2023.

Condor Gold 22.75p £42.6m (CNR.L)
The gold exploration and development company operating in Central America provides an update on the sale of assets. In November 2022, Condor Gold announced that following a Feasibility Study on the La India open pit, it was seeking a buyer for the assets of the Company. The current status is that the Company has received five non-binding offers and three site visits have been completed. There are currently eight companies under Non-Disclosure Agreements. Additional enquires have been received in the past 2 weeks. While the sales process is taking longer than anticipated, new enquires continue to be received, the Board is confident that a binding agreement will be reached.

DP Poland 7.9p £56.3m (DPP.L)
The operator of pizza stores and restaurants across Poland and Croatia, announces a trading update for first half of 2023. Record sales have been reported for H1 2023 and Like-for-like (LFL) sales in Poland increased 18% compared with the prior year, supported by order count growth of 11.3%. During the period, 4 store refurbishments completed, 2 stores opened and a further 3 are planned for H2 2023. Cash at bank of £2.5m as at 30th June 2023 (31st December 2022: £4.1m).

Filtronic 17p £36.6m (FTC.L)
The designer and manufacturer of products and sub-systems for the aerospace, defence, telecoms infrastructure and space markets, announces a new contract win to develop next generation space payload communication systems for the European Space Agency (ESA). The EUR3.7m (£3.2m) contract falls under ESA's Advanced Research and Telecommunications Systems (ARTES) programme for Space Deployment of 5G/6G and Sustainable Connectivity. Under the contract, Filtronic will develop a series of advanced mmWave products to enable broadband connectivity from low earth orbit satellites to receiving ground stations. The programme, which is part of the business forecast for FY2024, will begin immediately with the development of design concepts and prototypes during the current financial year, with the final hardware deliverable by 31 March 2025.

Heath (Samuel) & Sons 425p £10.8m (HSM.L)
The Company engaged in the manufacturing and marketing of hardware and bathroom field products announces its preliminary results for the year ended 31 March 2023. Total revenue for the year of £14.717m represented a 5% increase compared to the prior year (2022: £14.015m). Operating profit for the year was £1.167m (2022: £2.152m) and profit after tax £0.931m (2022: £1.472m). The sales increase versus the prior year occurred almost exclusively in the H1, with sales decreasing in the H2. The USD exchange rate movement against Sterling accounted for the majority increase. Cash and cash equivalents decreased by £1.697m, from £4.410m to £2.717m.

MTI Wireless Edge 43p £38.om (MWE.L)
The technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, announces the establishment of its subsidiary, MTI Wireless Communication India Private Limited, to cater to the demand for cutting-edge antennas in India's rapidly evolving 5G cellular market. MTI Wireless Communication India will offer an extensive range of antenna solutions specially designed for 5G networks and will strengthen the Group's commitment to the Indian market.

One Heritage Group* 20p £7.7m (OHG.L)
The UK-based residential developer, development manager and property manager focused on the North of England, has announced that a construction agreement has been signed between its client, One Heritage Great Ducie Street Limited and Torsion Construction Limited. The development management agreement relates to a residential development on land located between Great Ducie Street and Mirable Street, Manchester. Fees for the Company of 2% of ongoing total development costs have been secured and are payable over the anticipated development period. These fees are expected to be in the region of £20k per month until practical completion in Q2 2025. The Company will also be entitled to 15% of the net profit generated, which will be distributed following the legal completion of the sales for all units. Prior to the signing of this construction contract, in the financial year to June 2023, the Company earned £206k in project management fees, and another fee of £225.5k for the raising of construction debt in respect of this project. The Project is expected to have a gross development value of circa £39.1m and practical completion is scheduled for Q2 2025.

Premier African Minerals 0.44p £100.5m (PREM.L)
The multi-commodity mining and natural resource development company focused on Southern Africa announces that the Company has entered into an unsecured Loan Facility Agreement with George Roach, Chairman and CEO, for up to £1.7m. Premier can request a draw down of the Loan in two separate requests with the first being for £1m and the second request being the remaining balance of the Loan. Each Utilisation Request will be repayable on the date falling 6 calendar months after the Utilisation Request. The Loan is repayable in new Shares.

Renalytix 130p £123.3m (RENX.L)
The developer of artificial intelligence-enabled clinical in vitro diagnostic solutions for kidney disease announces opening the commercial availability of kidneyintelX.dkd™ testing in Saudi Arabia, Bahrain, Qatar, Oman, Kuwait, and United Arab Emirates through a distribution agreement with Vector Pharma. Following the recent announcement of FDA marketing authorisation for kidneyintelX.dkd, Renalytix will take advantage of select opportunities to expand testing services outside the US market with qualified distribution partners. The agreement with Vector Pharma brings established distribution and market access capabilities with a strong Gulf Cooperation Council (GCC) footprint. Vector Pharma will initially focus on building awareness and driving adoption to achieve specified annual sales targets by territory with kidneyintelX.dkd.

Thruvision Group 28.5p £41.9m (THRU.L)
The provider of walk-through security technology, announces its results for the financial year ended 31 March 2023. Revenue was up 49% to £12.4m (2022: £8.4m) and gross profit increased 71% to £5.8m (2022: £3.4m). Adjusted gross margin increased 4.8pp to 51.5% resulting from positive product mix and higher margin software revenue, with statutory gross margin growing 6.2pp to 47.0% reflecting production efficiencies. Adjusted EBITDA loss was £0.2m (2022: loss £1.7m) and operating loss reduced to £1.0m (2022: Loss £1.9m). Cash balance as at 31 March 2023 was £2.8m (31 March 2022: £5.4m), with cash at 20 July 2023 of £2.4m. As a result of the past year performance and current activity levels, the Company remain confident that it will continue to grow well and become the solution of choice for walk-through security.

21 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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