Small Cap Feast

24th April 2024

Dish of the day
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Dish Of The Day:



Whats baking in the oven?

Potential Initial Public Offerings:

Reverse Takeovers:

16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radical Limited for a consideration of approximately £1.3m, payable by the issue of new ordinary shares in Electric Guitar. The Acquisition constitutes a reverse takeover under the Listing Rules and therefore shareholder approval for the Acquisition is being sought at a general meeting of Electric Guitar to be convened for 1 May 2024.

17 April 2024: TGI Fridays, Inc. (TGIF) Hostmore plc announces that it has reached agreement on a non-binding basis for a proposed all-share acquisition of TGI Fridays, Inc. The Proposed Transaction would result in existing Hostmore shareholders holding 36% of the enlarged business upon completion (the Combined Group), with TGI Fridays shareholders holding a 64% shareholding. TGI Fridays is expected to be purchased for an enterprise value of £177m, or approximately 5.4x its FY23 underlying EBITDA. The Combined Group is expected to be renamed TGI Fridays plc, with its shares admitted to trading on the LSE’s Main Market. Completion of the Proposed Transaction expected to be by the end of Q3 2024.

Change of Market:

8 April 2024: (WRKS.L) a multi-channel value retailers of books, arts and crafts, stationery, toys and games, offering customers a differentiated proposition as a value alternative to full price specialist retailers. The Company is listed on the premium segment of the Main market of the London Stock Exchange. The Company has announced its intention to change to the AIM market on the 3 May 2024.

Dual Listing :

23 April 2024: Wellnex Life Limited (ASX:WNX), an Australian consumer healthcare company, has commenced the process to dual list on the London Stock Exchange. The Company believes that a dual listing will increase its international profile, particularly in Europe where Wellnex has an existing supply agreement with Haleon into the UK. Currently, the market capitalisation of Wellnex is AUD$23.8m.

Banquet Buffet

1Spatial plc 59.5p £66.0m (SPA.L)
The global company offering Location Master Data Management (LMDM) software and solutions, announces the audited results for the year ended 31 January 2024 (FY24). Revenue increased 8% to £32.3m, resulting in an increase of 15% in gross profit. Recurring revenue accounts for 56% of total revenues (FY23: 49%). Net cash was £1.1m (£1.1m at the end of FY23). There has been a solid start to trading in the current financial year with a growing pipeline and two significant framework agreements secured, with the State of Texas and UK Cabinet Office. The Board remains confident in delivering further progress in FY25 with a further growth step up in FY26.

ActiveOps plc 105p £74.9m (AOM.L)
The provider of Decision Intelligence software for service operations, provides a trading update for the year ended 31 March 2024. Revenue is expected to be approximately £26.8m, up 5% (FY23: £25.5m). Adjusted EBITDA is expected to be at least £2.2m (FY23: £0.7m), including an increase in capitalised R&D of approximately £0.5m to £1.35m (FY 2023 £0.85m, capitalised). Year-end cash position was £17.6m (FY23: £15.4m). The Company looks forward to the year ahead with confidence.

Angle PLC 15p £39.1m (AGL.L)
The liquid biopsy company with innovative circulating tumour cell (CTC) solutions for use in research, drug development and clinical oncology, has signed a supplier agreement with AstraZeneca PLC, to develop and validate a methodology leveraging ANGLE's existing DNA damage response (DDR) assay for the detection of micronuclei in CTCs as a measure of DDR. Assay development will take place in ANGLE's laboratories in Guildford, UK, and follows the Company's development and launch of two highly sensitive and specific DDR assays in 2023. The 6-month development phase is worth an initial £150,000 to ANGLE.

Filtronic plc 52p £112.9m (FTC.L)
The designer and manufacturer of products for the aerospace, defence, telecoms infrastructure and low earth orbit (LEO) space markets, announces that the Company has been successful in executing these contracts over the last six months and as such FY2024 revenue will now be marginally ahead of expectations and EBITDA will be significantly ahead of expectations. These recent contract wins provides visibility over the medium term. As a result, the FY25 outlook is significantly ahead of current market expectations for both revenue and EBITDA.

Gear4music 145p £30.4m (G4M.L)
The largest UK based online retailer of musical instruments and music equipment, announces a trading update for the year ended 31 March 2024 (FY24). Total revenue was £144.4m, down 4% from £152.0m in FY23. EBITDA is expected to be in line with market expectations. Net debt was reduced significantly to £7.3m (31 March 2023: £14.5m), ahead of market expectations. The Board is confident that the positive impact of the cost reductions made during FY24 will deliver full-year benefits in FY25.

MYCELX Technologies 56p £12.9m (MYX.L)
The clean water and clean air technology company provides a update on its recent business development. The Company has completed a treatability study paving the way for inclusion in a multiple technology, four-month pilot trial treating PFAS (Perfluoroalkyl and Polyfluoroalkyl Substances) contamination at a municipal wastewater treatment facility. The trial is expected to commence in Q1 2025, and the final outcome of the trial is expected to determine the award of a contract by the municipality in 2025..

Sound Energy 0.825p £16.4m (SOU.L)
The transition energy company announces its audited results for the year ended 31 December 2023. Gross profit was £42k (FY22: £5.7m due to reversal of impairment of development assets and exploration costs by £5.7m). Loss for the year was £7.2m. Cash and short-term deposits at the period end were £3.0m (£3.9m as at 31 December 2022). Loans and borrowings totalled £33.3m (£29.1m as at 31 December 2022). Phase 1 Micro LNG project: Initial well works setting packers in each well was completed in Q4 2023 with rig activities scheduled for June 2024. Processed gas is expected at plant by end 2024 with LNG sales thereafter.

Star Energy Group 11.4p £14.7m (STAR.L)
The British energy company announces its results for the year ended 31 December 2023. Revenue was £49.5m, down 16% from £59.2m in 2022. Adjusted EBITDA was £16.1m, down 24% from £21.1m in 2022. Net debt was £1.6m, compared to £6.1m at the end of 2022. Net production for the period averaged 2,100 boepd (2022: 1,898 boepd). The net production is anticipated to be c.2,000 boepd in 2024, with operating costs of c.$41/boe (assuming an average exchange rate of £1:$1.26). The Company expects a cash capex of £5.5m in 2024 for near-term incremental projects with short cycle returns, maintenance and optimisation of existing oil and gas sites.

SRT Marine Systems 22.5p £50.1m (SRT.L)
The global company which develops and provides integrated maritime surveillance, monitoring, management and safety systems, notes the recent share price movement and reporting in the Philippine press with regard to the IMEMS fisheries project. SRT wishes to clarify that the IMEMS contract was won following a competitive international tender, which has been successfully implemented and is operational. On Monday the Ombudsman confirmed that both SRT and Richard Hurd are cleared, but has recommended further investigation into Simon Tucker and other individuals outside of SRT. The Board is fully supportive of Simon who is now working to clear his name. Trading remains in line with market expectations.

Supreme plc 125p £145.6m (SUP.L)
The manufacturer, supplier, and brand owner of fast-moving consumer goods, provides a trading update for the year ended 31 March 2024 (FY24). FY24 revenue is expected to be around £225.0m, up 45% (FY23: £155.6m) and Adjusted EBITDA of at least £38.0m (FY23: £19.4m), in-line with current market expectations. Supreme's continued investment in rechargeable pod system vaping devices, coupled with its long-standing progress in developing a uniquely diverse vape product mix, ensures that it is well positioned to adapt to changes in the UK e-cigarette market.

24 April 2024
*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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