Small Cap Feast

24th October 2023

Dish of the day
No Joiners today
Off the menu
No leavers today
Dish Of The Day:

No joiners today.

No leavers today.

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


Our daily digest of news from UK listed Small and Mid caps straight to your Inbox.


This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.

The information contained in this document is based on materials and sources that are believed to be reliable; however, such information has not been independently verified and therefore it is not possible to confirm such information as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.

The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).

Any and all opinions expressed are current as of the date appearing on this face of this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.

This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.

In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as relevant persons). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.

Neither this document, nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.

Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.

Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.

This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.

MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.

Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.

If you would like to unsubscribe, please email with “unsubscribe me”.

© Copyright 2024 - Hybridan | Website by Boxed Up Media
First Visit
bookcrossmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram