Small Cap Feast

23rd November 2023

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What’s Cooking In The IPO Kitchen?

23 November — Substrate Artificial Intelligence ITF: 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 announces its Admission to the Aquis Growth Market. Expected Admission date is on or around the 7 December 2023.

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

Cambridge Nutritional Sciences 2.55p £6.1m (CNSL.L)
The medical diagnostics Company focused on promoting personalised approach to health and nutrition announces its unaudited interim results for the six months ended 30 September 2023. Revenue increased 44% to £4.9m (H1 2022: £3.4m), as a result gross margin increased to 62.7% (H1 2022: 54.0%), and adjusted EBITDA came in at £0.0m (H1 2022: restated loss £0.4m). The Company announced a loss before tax of £0.7m (H1 2022: restated loss £0.8m) and holds a cash balance of £4.4m. The Company announced strong performance in operations with FoodPrint in which its yields improved and the Company’s first USA laboratory commercialising FoodPrint was operational. The Company is on track to meet market expectations for the full year.

First Property Group 16.5p £18.3m (FPO.L)
The fund manager and investor with operations in the UK and Central Europe announces its interim results for the six months ended 30 September 2023. Revenue was £3.97m, the statutory loss before tax £0.65m (30 September 2022 profit before tax: £2.39m), and total AUM reduced by 21% to £358m (31 March 2023: £454m). The Company holds cash of £6.71m and net debt of £22.22m. With inflation reducing and interest rates close to their peak, the Group are looking forward to the future.

Hornby 16p £27.2m (HRN.L)
The international hobby products Group announces its unaudited interim results for the six months ended 30 September 2023. Group revenue was £23.8m (2022: £22.4m) an increase of 6% on the prior year, and underlying Operating Group loss before tax was £4.2m (2022: loss of £1.5m). The Company has net debt of £14.6m (September 2022: Net debt £4.9m), and holds cash at 30 September 2023 of £1m. The Company launched its first retail experience under the name The WonderWork. Hornby expects profitability to be depressed in 2023/2024.

Intelligent Ultrasound 8.88p £29.0m (IUG.L)
The 'classroom to clinic' ultrasound Company specialising in artificial intelligence (AI) software and simulation, announces a new AI development programme for gestational age estimation in prenatal care. ScanNav FetalCheck scanning technology aims to enable a non-skilled or skilled user to establish the gestational age accurately with minimal training. It aims to transform antenatal care Globally. Intelligent Ultrasound also announces that a university in Africa has purchased four ScanNav FetalCheck systems as part of a trial to evaluate biomarkers and other factors which affect the probability of stillbirth. ScanNav FetalCheck is currently not licenced for clinical use.

Longboat Energy 18.25p £10.3m (LBE.L)
An full-cycle E&P Company active in Norway and Malaysia provides an operational update. On 3 July 2023, Longboat announced that it had signed a sale and purchase agreement with INPEX Idemitsu to acquire a 9.60% interest in PL 089, equating to a 4.80% unitised interest in the Statfjord Øst Unit and a 4.32% unitised interest in the Sygna Unit, for cash consideration of US$12.75m. Initial production for 2023 is estimated to be around 250 boepd net to Longboat JAPEX, which is slightly lower than anticipated. Longboat remains strategically focused on delivering value-accretive M&A opportunities across both of its key regions of Norway and South East Asia.

Michelmersh Brick Holdings 82p £76.8m (MBH.L)
The brick manufacturer announces a trading update in relation to its financial results for the year ending 31 December 2023. The trading performance of the Group has been resilient in the final quarter of the financial year as they have continued to operate at full manufacturing capacity to deliver the forward order book. The Company continue to focus on controlling input costs and the efficiency of its facilities within this environment. The Board expects revenue, profit and cash for the Group to be in-line with market expectations for the 12 months ending 31 December 2023.

Mirriad Advertising 2.7p £10.8m (MIRI.L)
The in-content advertising Company announces that further to the Company's announcement on 13 October 2023, Nic Hellyer has been appointed to the Board of the Company as Chief Financial Officer with immediate effect. Nic joins the Company with over 30 years of financial and listed company experience, having held various senior banking director and CFO roles. David Dorans will remain on the Board of Mirriad as an Executive Director until 31 December 2023.

Sareum Holdings* 60p £42.2m (SAR.L)
A biotechnology Company developing next generation kinase inhibitors for autoimmune disease and cancer announces that it has drawn down on the £0.3m Second Deposit in respect of the Equity Prepayment Facility announced on 3 August 2023. In accordance with the terms of the Equity Prepayment Facility, the Company will issue 227,892 four year warrants over ordinary shares of 1.25p each exercisable at a price of £0.829337 to Riverfort.

United Oil & Gas 0.78p £5.1m (UOG.L)
The full-cycle oil and gas Company with a portfolio of production, development, exploration and appraisal assets, issues a Corporate update. The Company announces that Simon Brett has been appointed Interim Chief Financial Officer (non board appointment) and Company Secretary, effective immediately. Simon brings a wealth of sectoral and public markets experience having worked fourteen years in Barryroe Offshore Energy plc. The Company continues to engage with the Jamaican authorities to secure an extension to the current license period which expires at the end of January 2024, that comprises additional technical work that would further de-risk the license prior to the drilling of the exploration well.

Windward 72p £61.7m (WNWD.L)
The Maritime AI company, announces the signing of a five-year contract with a European national coastguard (Customer). The contract has a total value of EUR3.2m (c. US$3.5m) which is expected to be paid in full up front, strengthening the Company's cash position, while the revenue will be recognised over the course of the contract, adding approximately $700k per year to Windward's Annual Contract Value. The Company is trading comfortably in line with market expectations and continues to see a strong pipeline.

23 November 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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