Small Cap Feast

22nd November 2023

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What’s Cooking In The IPO Kitchen?

15 November: Afentra Plc ITF: Formerly Sterling Energy plc, and launched in 2021 to support the African energy transition as a independent oil and gas company announces its Admission to AIM pursuant to the Sonangol Acquisition which constitutes a reverse takeover and therefore Admission is being sought as a result of such reverse take-over. The Company will not be raising new capital as part of its Admission. Anticipated market capitalisation on Admission will be c.£65m. Expected Admission date is expected mid-December.

9 November: Chapel Down Group ITF:  England's leading and largest wine producer with an award-winning range of sparkling and still wines, under the Chapel Down brand. The Company owns, leases and sources from 1,023 acres of vineyards in South East England announces its Admission to AIM after its transfer from the Aquis Apex market. The Company will not be raising new capital or providing a secondary offering as part of its Admission. Anticipated market capitalisation on Admission will be c.£75m. Expected Admission date is 7 December 2023.

2 October: Tekcapital announced intention to spin off and IPO: 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

Atlantic Lithium 26.58p £162.7m (ALL.L)
The African-focused lithium exploration and development company provides an update on its flagship Ewoyaa Lithium Project in Ghana, West Africa. Bulk Customer Permit was awarded in respect of the electricity requirements of the project, expected to deliver a 30-50% overall power cost reduction. Advanced discussions ongoing for the award of the Engineering, Procurement, Construction and Management (EPCM) contract for the main processing plant and all non-processing infrastructure. Award of the contract to divert the transmission lines is expected in Q2 2024.

Aurrigo International 102.5p £46.6m (AURR.L)
The international provider of transport technology solutions, has signed a Project Agreement with International Airlines Group, S.A. (IAG) for the deployment and demonstration of Aurrigo's autonomous aviation solutions at the Cincinnati/Northern Kentucky International Airport (CVG). The Partnership is expected to follow a similar phasing to Aurrigo's agreement with IAG in the UK with an evaluation and simulation phase to commence in November 2023 running for three months. The deployment of Aurrigo's vehicles under the Agreement will be undertaken at CVG and valued at $0.29m.

CleanTech Lithium 22.0p £23.1m (CTL.L)
The exploration and development company advancing sustainable lithium projects in Chile, announces that it has conditionally raised gross proceeds of £8m by issuing new shares at 22 pence per shares. The Placing comprises 14,124,466 Firm Placing Shares together with 7,062,233 Warrants, and 22,239,172 Conditional Placing Shares and 11,119,586 Warrants. Regal Funds, interested in more than 10% of the Company's issued share capital, has agreed to subscribe for approximately £1.2m , thereby maintaining its current interest in the Company on the enlarged basis. The new funds will be focused on the development of the Laguna Verde project and provide flexibility for additional drilling at Francisco Basin.

Duke Royalty 31.25p £131.7m (DUKE.L)
The provider of alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and abroad, announces its interim results for the six-months ended 30 September 2023 (H1 FY24). Cash revenue increased 35% from the prior period to £14.1m (H1 FY23: £10.4m). Free cash flow was up 23% to £7.9 million (H1 FY23: £6.5 million). Adjusted earnings was up 23% to 1.95 pence per share (Interim 2023: 1.58 pence per share). The Company has over £40m of available liquidity for future deployments.

OptiBiotix Health 27.0p £24.6m (OPTI.L)
The life sciences business developing compounds to tackle obesity, high cholesterol, diabetes and skincare, announces that the University of Reading has provided a grant under the Biotechnology and Biological Science Research Council (BBSRC) to fund a research project on WellBiome®, a new prebiotic and mineral complex. The research project will be carried out by the University of Leeds and provides £55k to assess the ability of WellBiome®. WellBiome® was launched in 2023 was part of a strategy to enhance OptiBiotix's range of product offerings and to mitigate the seasonal variations in the sale of weight management products.

Pebble Beach Systems Group 6p £7.5m (PEB.L)
The provider of digital commerce, products and related services to the global promotional products industry, provides a trading update for the year to 31 December 2023 (FY23). Group revenues for FY23 are expected to be approximately £124m, down 7% (FY22: £134m). As the Group has continued to generate stronger gross margins in FY23, the impact of the revenue reduction is expected to be partially mitigated. Group EBITDA is expected to be approximately £16m (FY 22: £18.0m). The Group expects net cash as at 31 December 2023 to be no less than prior year net cash of £15.1m, Strength of pipeline and level of customer engagement provides management with confidence in delivering full year growth.

Petards* 6.25p £3.5m (PEG.L)
The AIM quoted developer of advanced security and surveillance systems, announces the appointment of Geraint Davies, as an independent Non-Executive Director with immediate effect. Geraint Davies is a Fellow of the Institute of Chartered Accountants with over 30 years' experience, working with global national and local organisations in the private and public sector. Prior to his appointment, Geraint held senior leadership roles in EY's practices in the Channel Islands, the UK, and Europe, most recently in Malta. He has also previously held roles with PwC and Deloitte.

Quadrise 1.5525p £24.3m (QED.L)
The supplier of innovative energy solutions provides an update on its fuel trial following the announcement on 31 October 2023. The industrial demonstration test of MSAR® and bioMSAR™ fuels at the client's site in Morocco has been completed in accordance with the performance criteria of the agreement announced by the Company on 13 June 2022. The industrial unit in question was successfully operated at varying loads of up to 100%, equivalent to 33MW of energy that is supplied by a single burner. The final phase of combustion optimisation tests recently completed involved experts from Quadrise and the client fine-tuning combustion at full (100%) load and production rates using Quadrise fuels.

Redcentric 111.5p £174.m (RCN.L)
The UK-based IT managed services provider announces its unaudited results for the six months to 30 September 2023 (H1 FY24). Revenue grew by 33.3% to £82.0m (H1 FY23: £61.5m). Adjusted EBITDA was £14.5m (H1 FY23: £11.7m). Net debt increased by £1.7m since 31 March 2023 to £74.7m. Electricity conservation programmes completed post the period end with annualised savings of £2.8m. Further own-use electricity commodity contracts taken out with 100% of FY24 and 70% of FY25 anticipated volumes secured at fixed prices. The full benefits of reduced electricity commodity prices and the energy conservation programmes are expected from 1 April 2024 onward.

Ten Lifestyle Group 104p £88.3m (TENG.L)
The technology-enabled, global concierge platform, announces its preliminary results for the year ended 31 August 2023 (FY23). Net revenue increased 35% to £63.0m, (FY22: £46.8m), adjusted EBITDA was £12.0m (FY22: £4.9m), an 145% improvement. Profit before tax was £0.9m (FY22: loss £3.8m). Net cash was £3.7m (FY22: £3.2m). The Company plans to maintain investment in technology, communications, and content, which provides competitive advantage, with investment into AI and expects cash generation across FY24, with H2 being stronger than H1.

22 November 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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