Small Cap Feast

27th November 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?

23 November — Substrate Artificial Intelligence ITF: 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 announces its Admission to the Aquis Growth Market. Expected Admission date is on or around the 7 December 2023.

15 November: Afentra Plc ITF: Formerly Sterling Energy plc, and launched in 2021 to support the African energy transition as a independent oil and gas company announces its Admission to AIM pursuant to the Sonangol Acquisition which constitutes a reverse takeover and therefore Admission is being sought as a result of such reverse take-over. The Company will not be raising new capital as part of its Admission. Anticipated market capitalisation on Admission will be c.£65m. Expected Admission date is expected mid-December.

9 November: Chapel Down Group ITF:  England's leading and largest wine producer with an award-winning range of sparkling and still wines, under the Chapel Down brand. The Company owns, leases and sources from 1,023 acres of vineyards in South East England announces its Admission to AIM after its transfer from the Aquis Apex market. The Company will not be raising new capital or providing a secondary offering as part of its Admission. Anticipated market capitalisation on Admission will be c.£75m. Expected Admission date is 7 December 2023.

2 October: Tekcapital announced intention to spin off and IPO: 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. AIM Admission delayed, expected mid-November.

Breakfast Buffet

1Spatial 48p £53.2m (SPA.L)
The global leader in Location Master Data Management (LMDM) software and solutions, notes that the UK Government's recent announcement that the National Underground Asset Register (NUAR) is now available across England, Wales and Northern Ireland, ahead of becoming fully operational by 2025. NUAR is a digital map of underground pipes and cables expected to provide £5bn of economic growth to England, Wales and Northern Ireland through increased efficiencies in construction and development.

Celebrus Technologies 184p £73.2m (CLBS.L)
The data solutions provider announces its results for the six months to 30 September 2023 (H1 FY24). Revenue was £13.0m, up 60% year-on-year (H1 FY23: £8.1m). Adjusted profit before tax was £0.2m (H1 FY23: loss of £1.3m. Cash position was £14.7m (H1 FY23: £26.2m: FY23: £17.1m) with no debt. Solid progress in the first half and the high visibility of opportunities expected to close in the second half underpin the Board's confidence in achieving full year market expectations.

Concurrent Technologies 74p £63.4m (CNC.L)
The specialist in the design and manufacture of high-end embedded computer systems and boards for critical applications, announces a trading update for the year ended 31 December 2023 (FY23). The Board expects to deliver revenue for FY23 ahead of market expectations, prior to the contribution of Phillips Aerospace which was acquired in September 2023. Revenue for H2 FY23 is expected to be substantially higher than any prior half-year in the Company's history, driven by the strength of order intake over the preceding 24 months. The Board is confident in the delivery of material revenue growth in FY24 and beyond.

CPP Group 144p £12.7m (CPP.L)
The provider of real-time assistance products and resolution services, has entered into an agreement with the founders of Globiva Services Private Ltd (Globiva) for the disposal of the Group's majority interest in Globiva for an aggregate consideration of approximately £5.1m. The Group holds a 51% majority interest in Globiva, a Business Processes Management company incorporated in India, with the other 49% of the shares beneficially owned by the three founders of Globiva, Navneet Gupta, Vikram Singh Nathawat, and Ashish Goyal.

Frontier Developments 157.7p £62.2m (FDEV.L)
The developer and publisher of videogames based in Cambridge, UK, provides a business update. Following the lower than expected sales performance of Realms of Ruin, the Board no longer believes that the current market expectation for FY24 revenue of around £108m is likely to be achieved. Updated guidance for FY24 revenue is in the range of £80-95m. Despite the reduction in revenue guidance, the Board believes that the current market expectation for an Adjusted EBITDA loss of around £9m remains achievable towards the upper-end of revenue guidance.

Fulcrum Metals 15.75p £7.9m (FMET.L)
The company focused on mineral exploration and development in Canada, announces an update on its Saskatchewan exploration assets. Through a combination of staking 29,362 hectares and acquiring an option over a further 11,481 hectares, the Company has increased its Saskatchewan uranium footprint by a potential 221%. The option agreement totals 11,481 hectares and has a close date of 30 June 2024. The Company has paid CA$5,000 in cash immediately, with CA$60,000 payable in either cash or equity should the option agreement be exercised. The cost of the staking totalled CDN$17,889 with these properties having no work requirements until October 2025, whilst the optioned properties have work requirements of CDN$57,073 through to the end of 2024.

Epwin Group 71p £102.9m (EPWN.L)
The manufacturer of energy efficient and low maintenance building products for the Repair, Maintenance and Improvement (RMI), social housing and new build markets in the UK, announces a trading update. Trading in the second half of the year has been resilient and the Board remains confident of achieving FY23 underlying operating profit ahead of the prior year and in line with market expectations (company compiled analyst consensus of £24m). In addition, the Group's strong balance sheet and cash generation provides the opportunity to take advantage of current market conditions to repurchase shares at attractive levels. The Company commences today a share buyback programme of up to 3 million ordinary shares. It is currently envisaged that the buyback will end no later than 30 April 2024.

MediaZest* 0.0425p £0.6m (MDZ.L)
The audio-visual solutions provider announces another new business win with an international retail client. Following a successful initial project with this client in the UK in 2023, a further installation has been contracted for early 2024, with more stores expected in Europe later in the year. These latter projects would be delivered by the Group’s European subsidiary, based in the Netherlands, which continues to add other new business projects and has performed well during its first year of trading.

Proton Motor Power Systems 4.75p £73.8m (PPS.L)
The designer and producer of hydrogen fuel cells and hydrogen fuel cell electric hybrid systems, announces that it has successfully delivered 15 HyModule® S8 hydrogen fuel cell system to its long-term customer, GKN Hydrogen Italy S.r.l (GKN Hydrogen), as per the follow-up order from GKN Hydrogen announced on 31 January 2023. In addition, the Company has been awarded with a grant provided by the German Ministry for Economics and Climate (BMWK). The Company estimates that it will be eligible to receive up to approximately €300,000 over the 36 month period.

SDX Energy 4.05p £8.3m (SDX.L)
The company in transition from an oil & gas business into an integrated, hybrid energy-provider in Morocco, is divesting its Egyptian assets. SDX will maintain its upstream Moroccan gas assets and continue to produce natural gas, selling it to offtakers. The Company also intends, in the medium-term, to expand into renewable power generation - leveraging its strong gas offtaker base for a commercially compelling cross-sell of gas and green electricity. The Board remains confident that it is on track for the Egyptian sale and further announcements will be made once definitive legal documentation has been signed to effect the sale.

27 November 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


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