Small Cap Feast

24th July 2023

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What’s Cooking In The IPO Kitchen?

Announced ITF 12 July: 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.

Announced ITF 6 July: 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 delayed.

Announced ITF 3 July: 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 27 July 2023.


Breakfast Buffet

Arcontech Group 66p £8.8m (ARC.L)
The provider of products and services for real-time financial market data processing and trading announces that for the year ended 30 June 2023 turnover is expected to be in line with market expectations and adjusted EBITDA and adjusted profit before tax is expected to be ahead of market expectations by approximately 31% and 49% respectively, as a result of a combination of lower than anticipated staff related costs arising from lower variable costs and delayed hires. These are expected to be once off savings in the year to 30 June 2023. Expectations for the current financial year remain unchanged.

Beeks Financial Cloud Group 108.25p £71.0m (BKS.L)
The cloud computing and connectivity provider for financial markets announces the signing of a number of private cloud contracts in July, with a total contract value of over $4m. These include a significant win, via a partner, with one of the UK's largest banks. The wins come on the back of good contract momentum, with Beeks having announced its second Exchange Cloud customer, the Johannesburg Stock Exchange, in June 2023, providing increasing levels of revenue visibility for FY24 and beyond. The two Exchange Cloud contracts signed to date have the ability for considerable expansion, and the Company has a pipeline of additional such opportunities which have the potential to be transformational.

Forward Partners Group 24.5p £33m (FWD.L)
The London-based investment firm specialising in supporting high-growth, early-stage technology businesses announces an update on its portfolio and its exposure to the fast-growing AI sector. Forward invested £0.5m into an AI platform as part of its £2.4m seed round, alongside other investors. Recent advancements in generative AI technology have created the potential for whole new product categories; Forward's portfolio includes 20 businesses now classified as AI. As outlined in Forward's full-year results, in 2022, AI-powered lending platform Koyo Loans experienced difficulties and is initiating a wind-down of the company. For Forward, this is expected to result in a £2.3m write-down in Fair Value at the interim date. The Company reports good portfolio momentum and strong deal flow.

Haydale Graphene Industries 1.15p £9.0m (HAYD.L)
The global technology solutions company announces its next collaboration with Cadent Ltd to develop graphene ink-based low-power radiator heaters. The £350k three-stage project will run for 12-months and is seeking to develop a tested and validated market-ready product as a cost-effective alternative for Cadent's customers when their gas supply is interrupted. Following on from the low-power, battery operated water heating development announced in February 2022 and July 2023, the aim for the latest project is to incorporate the same graphene-ink based technology into different designs to deliver bespoke solutions for a wide range of customer requirements.

Inland Homes - Suspended (INL.L)
The brownfield developer, housebuilder and partnership housing company with a focus on the South and South East of England announces the appointment of Jolyon Harrison as Chief Executive Officer of the Group, following Nishith Malde’s (One of the founding shareholders, Chief Financial Officer and Acting Chief Executive Officer) intention to retire. Jolyon has a beneficial holding of 4.94% in Inland Homes. Richard Padley is to join the board as Non-executive Director following completion of regulatory director due diligence. The Board also announces that it has agreed Heads of Terms for the acquisition of NorthCountry for a consideration of £4m, to be settled by the issue of 40m new ordinary shares in Inland Homes. Jolyon Harrison is Executive Chairman and 51% shareholder in NorthCountry.

Intelligent Ultrasound Group 8.75p £28.6m (IUG.L)
The 'classroom to clinic' ultrasound company specialising in artificial intelligence software and simulation provides a trading update for the six months to 30 June 2023. The Group expects to report that revenue for the period to 30 June 2023 has grown by 3% to £6.1m (H1 2022: £5.9m). The Group's clinical AI products continue to gain traction and revenues are expected to have more than doubled to £0.7m (H1 2022: £0.3m). Cash at bank on 30 June 2023 was £3.4m (31 December 2022: £7.2m), impacted by working capital seasonality in H1. Cash utilisation in H2 is expected to be materially lower and the Group remains on target to reach profitability with its current cash.

Norman Broadbent 5.25p £3.2m (NBB.L)
The quoted executive search and interim management firm offering a diversified portfolio of integrated leadership acquisition & advisory services announces its unaudited interim results for the six months ended 30 June 2023. Revenue increased 54% to £6.1m (H1 2022: £3.9m) and net fee income increased 58% to £5.2m (H1 2022: £3.3m). The Company returned to profitability for the first time since H1 2029, reporting a profit after tax of £8k (H1 2022: loss after tax £72k) and net cash generated by operating activities of £0.05m. Looking ahead, management remains confident heading into H2 following a strong pipeline of opportunities.

Nostrum Oil & Gas 10.9p £1.8m (NOG.L)
The independent oil and gas company engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin announces the successful start-up of the new compressor doubling its Gas lift capacity, which helps slowing down production decline from maturing Chinarevkoye field. As the demand for gas lift has been growing due to the majority of the producing wells requiring it to sustain production, in early 2022 Nostrum funded the addition of further compression to raise the capacity of the system from 500 to 900 thousand m3/ day for circa US$8m. The Company managed to successfully complete and commence the project in line with budget and without any major HSE incidents. The initial production gains exceed management's expectations and further updates on production guidance will be provided as part of Q3 2023 operational update.

Trackwise Designs - Suspended (TWD.L)
The manufacturer of specialist products using printed circuit technology announces the launch of a sale process for the business. On 21 July 2023 the Company announced that, after working with a Tier-1 for more than a year on the opportunity to supply Cell Connection System FPCAs to the Tier-1, for onward assembly and supply to OEM B, Trackwise has been informed by the Tier-1 that the Tier-1 has not been successful in obtaining nomination from OEM B. Following a further internal review, the Board has resolved to commence a sale process for TWD.

Upland Resources 0.6p £6.6m (UPL.L)
The upstream oil and gas Company announces that the Company is now in the formal process of assessing and contracting an onshore rig capable of developing Block SK334 in Sarawak. Members of the Upland Big Oil joint venture team are in Australia this week assessing the suitability of a new generation onshore rig, which is currently stacked and available for commission. Preliminary estimates suggest that Block SK334 contains similar resources to those found in the neighboring billion-barrel Seria field, equivalent in scale to some of Europe's largest offshore Oil & Gas fields.

24 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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