Small Cap Feast

24th October 2023

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What’s Cooking In The IPO Kitchen?

Announced ITF 11 October: Cykel AI, the company developing artificial intelligence AI software designed and trained to execute commands in response to natural language directives, specifically within the realm of computer interfaces, intends to join the Access Segment of the AQSE Growth Market. Admission on or around 25 October.

Announced ITF 2 October: Adsure Services, the holding company for TIAA Limited, a specialist business assurance provider operating across the Housing, Healthcare, Government, Education, Charities, and other sectors in the UK, intends to join the Access Segment of the AQSE Growth Market. Admission expected on 30 October.

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. Admission delayed, expected mid-November.


Breakfast Buffet

Angling Direct 35p £27.0m (ANG.L)
The omni-channel fishing tackle and equipment retailer, announces its unaudited financial results for the six months ended 31 July 2023 (H1 FY24). Revenue increased by 11.4% to £43.3m. Pre IFRS 16 EBITDA grew 26.6% to £2.3m. Net cash was £17.6m at 31 July 2023 (31 January 2023: £14.1m). August and September sales were in line with expectation, up 13.9% year-on-year. The Group is well placed to deliver revenue and pre-IFRS 16 EBITDA for the current year in line with market expectations.

Bradda Head Holdings 2.6p £10.2m (BHL.L)
The North America-focused lithium development group, announces receipt of the US$2.5m payment from the Lithium Royalty Corporation (LRC) upon confirmation of the Mineral Resource Estimate (MRE) surpassing 1.0Mt Lithium Carbonate Equivalent (LCE) at the Company's Basin Project in Arizona (September 28, 2023 PR). BHL has initiated a new drill plan for Basin with a particular focus on placing sites to reduce surface impact and meet its objective of defining an inferred total MRE of +2.5Mt LCE. The Company has also expanded the claim block to the north by adding an additional 2.84 square kilometres of claims over open ground which has exceptional exploration potential.

Cordel Group 4.0p £8.0m (CRDL.L)
The Artificial Intelligence platform for transport corridor analytics, announces it has been awarded a Data-as-a-Service contract for data capture and analysis with Network Rail (High Speed) Ltd, which maintains the railway infrastructure for High Speed One (HS1) between St Pancras International in London and the Channel Tunnel. Data will be captured from equipment installed on trains utilising the Cordel Wave 32 LiDAR and camera hardware recently certified by Network Rail (announced 12 June 2023).

Cornerstone FS 14.75p £8.5m (CSFS.L)
The foreign exchange and payments solutions company offering multi-currency accounts to businesses and individuals, provides the following unaudited update on trading. Revenue for the year to 31 December 2023 (FY23) is expected to be at least £8m, ahead of its prior expectations and representing an annual growth rate of at least 66%. With the increase in revenue and continued management of the cost base, the Group expects adjusted EBITDA for FY23 to be ahead of the Board's prior expectations.

LPA Group 81p £10.9m (LPA.L)
The innovation-led engineering Company focusing in electronic and electro-mechanical components and systems, provides a trading update for the year ended 30 September 2023. Revenues increased to £21.7m, up 11%. Orders increased to £25.7m, up 30%, resulting in a total order book of £31.6m at year end. The strong trading in H2 resulted in an underlying position of breakeven for the full year. The Company also expects a positive exceptional fair value adjustment for the recent product line acquisition undertaken in March, which continues to trade strongly. As a consequence, profits before tax for the year is approximately £1.1m. The Company confirms the intention of restoring a dividend for the 2023 financial year and beyond.

Onward Opportunities Limited 101.5p £16.3m (ONWD.L)
The closed-ended fund that invests in smaller UK companies, publishes its second quarterly factsheet to the end of September 2023 (Q3 2023) following its admission to trading on AIM in March 2023. As at 30 September 2023, the unaudited net asset value per ordinary share was 100.39p per share, an increase of 4.12% from 30 June 2023. The positive NAV performance mainly driven by Angling Direct, Restore, DX Group, React Specialist Cleaning and Transense Technologies, three of which are core positions. The portfolio captured its first two takeover approaches in the nursery, with DX Group and STM Group.

Pressure Technologies 26.5p £10.2m (PRES.L)
The engineering group announces it has reached agreement in principle with its major shareholders Rockwood Strategic plc and Peter Gyllenhammar AB for the provision of a new Term Loan Facility of £1.5m to refinance the existing debt facilities and provide additional working capital headroom. Meanwhile, the Board has decided that the timing is now favourable to realise value through the divestment of the PMC (Precision Machined Components) division. The Group has appointed advisors to handle the sale process which it expects to launch in November 2023. The sale process is expected to run for approximately 6 months.

Renalytix 43p £41.9m (RENX.L)
The company to commercialise an FDA authorised artificial intelligence (AI) enabled blood test to assess risk of progressive kidney function decline for individuals with type 2 diabetes and early-stage chronic kidney disease, announces that Timothy Scannell has stepped down from his role as independent Non-Executive Director effective as of October 18, 2023, to pursue other opportunities.

System1 Group 190p £24.1m (SYS1.L)
The marketing decision-making platform issues a trading update for the half-year ended 30 September 2023 (H1 FY24). Group revenue in H1 was £13.3m, up 27% year-on-year. Gross profit for the first half year is expected to reach £11.6m, up 36% (H1 FY23: £8.5m). Operating costs are expected to increase by £2.2m versus the comparable period, due to increased staff costs. The Company expects to report a statutory pre-tax profit just below £1.0m for the half-year (H1 FY 23: £0.0m).

Thruvision Group 24p £35.3m (THRU.L)
The provider of walk-through security technology announces that, further to the announcement made on 23 October 2023 regarding the launch of a proposed placing, of new ordinary shares at a price of 23.5p per share to raise gross proceeds of approximately £3.2m. The Placing Price of 23.5p per share represents a premium of approximately 6.8% to the closing mid-market price of 22.0p on 20 October 2023. The Placing comprises the strategic investment by Pentland Capital. Canaccord Genuity Wealth Management (currently a 16.2% shareholder) has subscribed for approximately £0.5m.

24 October 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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