Small Cap Feast

27th 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. Delayed - Expected Admission 31 July 2023.

Breakfast Buffet

4GLOBAL 57.5p £15.1m (4GBL.L)
The UK-based data, services and software company focused on major sporting events and the promotion and measurement of physical activity, announces its audited results for the year ended 31 March 2023. Revenue was £5.6m, up 53% (2022: £3.6m). Profit before tax was £520k vs a loss for the prior year of £1.9m. Net cash was £1.1m (March 2022: £3.0m). The Company seeks to increase penetration in the European and North American markets and develop new revenue streams associated with data. With strong financial performance in the first quarter of the new financial year, the Company is confident in continued strong financial performance.

Alba Mineral Resources 0.13p £10.0m (ALBA.L)
The group with a mineral exploration portfolio provides an update on its portfolio company, GreenRoc Mining Plc, regarding its Amitsoq Graphite Project in South Greenland. Potential off-take customer for Amitsoq has requested graphite concentrate and spheronised graphite samples in order to conduct its own testwork. A total of 700kg bulk sample of graphite ore is nearing the final stages of separation at process engineering contractors UVR-FIA. Preliminary Economic Assessment (PEA) conducted by SLR is advancing as planned and is expected to delivery this autumn. The PEA will assess all key aspects of a future graphite mining operation at Amitsoq based on a projection of annual mining of 400,000t of ore for the production of c. 80,000t of graphite concentrate.

Bango 188.5p £144.7m (BGO.L)
The global platform for data-driven commerce announces a trading update for the 6 months ended 30 June 2023. The revenue in 1H23 was up 88% to $20.3m (1H22 $10.8m), in line with management expectations. Adjusted EBITDA in 1H23 is expected to be -$0.4m (1H22: $2.9m), in line with management expectations, reflecting the costs associated with the DOCOMO Digital integration. The integration is progressing well with actions already taken to deliver $19m of the $21m of guided cost synergies. The benefit from synergy actions and the typical second half revenue weighting underpins management's confidence in delivering EBITDA in line with market expectations for the full year.

eEnergy Group 5.9p £20.7m (EAAS.L)
The net zero energy services provider provides a trading update for the year ended 30 June 2023. Revenue was up 50% to £33.1m (FY 2022: £22.0m), with Energy Services revenue up by 86% to £19.5m and Energy Management revenue £13.6m, up 17%. The Company’s adjusted EBITDA was up 55% to £4.7m (FY 2022: £3.0m). Profit before tax was £1.1m (FY 2022 Loss Before Tax: £2.2m). Net debt (excluding IFRS 16 lease liabilities) at 30 June 2023 was £7.0m (31 December 2022: £6.6m). The Company's contracted revenue book remains strong and gives good visibility on Q5/Q6 revenues. Contracted forward revenues at 30 June 2023 were £27.5m (31 December 2022: £26.4mn), of which £14.1m are expected to convert into revenues in the six months to 31 December 2023. The Board is confident in the trading outlook for the remainder of FY23 and beyond.

Franchise Brands 147.5p £285.8m (FRAN.L)
The international multi-brand franchise business, announces its unaudited results for the six months ended 30 June 2023. System sales increased by 81% to £146.0m (H1 2022: £80.6m). Statutory revenue increased by 57% to £69.8m (H1 2022: £44.5m). Adjusted profit before tax increased by 45% to £8.6m (H1 2022: £5.9m). Adjusted net debt was £79.1m at 30 June 2023 (30 June 2022: net cash of £6.8m) post the acquisition of Pirtek Europe in April. The increase of 11% in the interim dividend declared to 1.0p per share (2022 interim dividend: 0.9p per share) reflecting the Board's confidence in the growth prospects for the enlarged Group. The Board anticipates the Group’s full year performance to be at least in line with expectations.

Mission Group 40.5p £36.9m (TMG.L)
The creator of Work That Counts, comprising a group of digital marketing and communications agencies, issues a trading update for the six months ended 30 June 2023. The Group expects to report overall revenue growth of 12% to £42.0m (30 June 2022: £37.5m), with headline operating profit of £1.9m (30 June 2022: £2.2m). Headline profit before tax for the period has been impacted by higher interest rates and is expected to be £1.0m (30 June 2022: £1.8m). Revenue growth has been driven by strong progress across MISSION's Lifestyle & Property, Sports & Entertainment and B2B sectors.

RBG Holdings 19.75p £18.8m (RBGP.L)
The legal and professional services group publishes a trading update for the six months ending 30 June 2023. RBG Legal Services which trades under two brands - Rosenblatt and Memery Crystal - has performed broadly in line with the Board's expectations. The specialist sell-side corporate finance advisory business, Convex Capital, has a strong pipeline of 18 deals (as at 1 July 2023) and it is expected that deal flow will become more consistent in the second half of the year. It is currently expected that a number of these pipeline deals will complete in the second half. In conclusion, the Board believes that full-year adjusted EBITDA is now more likely to be in the range of £10m to £12m.

Safestyle UK 10.1p £14.0m (SFE.L)
The UK focused retailer and manufacturer of PVCu replacement windows and doors for the homeowner market, issues a trading update for the six months ended 2 July 2023 (1H 2023). Revenue in H1 2023 is expected to be £74m, a decline of 5.4% year-on-year, due to weakened consumer confidence. The challenging market conditions have worsened over the last 5 weeks into July and have adversely impacted order intake volumes. The Group's full year performance is now expected to be materially below current market expectations. The Board continues to forecast an underlying profit before taxation for H2, now expected to be c.£0.5m. The net cash position at the end of the year is still expected to be positive. The Group also remains fully compliant with its borrowing facility arrangements and the full £7.5m facility continues to be accessible.

SDX Energy 5.25p £10.7m (SDX.L)
The independent upstream company that carries out the exploration, development and production of crude oil and natural gas, announces that, following the securing of higher gas prices, the Company has secured financing to expand its Moroccan gas production. The syndicated convertible loan agreement with Aleph Finance Ltd for up to $3.25m of which an initial amount of $2m has been drawn and will be immediately used to reduce outstanding debt to the European Bank for Reconstruction and Development, pay critical service providers to accelerate the Moroccan drilling campaign and for general corporate purposes. The Convertible Loan enables the Company to move the business forward, towards an energy transition strategy, as it continues with the process to sell its Egyptian assets.

Sound Energy 1.33p £24.7m (SOU.L)
The transition energy company advises that it has received conversion notices to issue 22,222,222 Ordinary Shares at a conversion price of 2.25 pence per Share under an existing £2.5m Convertible Loan Note Agreement, the terms of which were announced on 13 June 2023 (Partial Conversion). The Partial Conversion reduces the amount owing on the Convertible Notes by £500k with £2m remaining. Following Admission of the Shares on 1 August 2023, the Company's enlarged share capital will comprise 1,882,329,117 ordinary shares, each with voting rights.

27 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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