Small Cap Feast

28th November 2023

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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

Alien Metals 0.3p £19.1m (UFO.L)
A minerals exploration and development Company announces it has entered into a conditional, non-binding Memorandum of Understanding (MoU) with Pilbara Ports to access its Utah Bulk Handling Facility (Utah Point). The MoU aids the Iron Ore Company of Australia Pty Ltd (IOCA) to access the common-use stockpiles at Utah Point and export up to 1.25m tonnes per annum of Iron Ore from Q4 2024. IOCA also announces that the next step in this process has progressed to a point whereby Pilbara Ports and IOCA have agreed the terms of the binding agreement for iron ore export through Utah Point, subject to regulatory approvals.

Ariana Resources 2.15p £24.6m (AAU.L)
The mineral exploration and development Company with gold mining interests in Europe announces results from a recent drilling programme at the Kizilcukur Project. Process metallurgical testwork of the Kizilcukur mineralisation yields an average gold recovery of 97%, significantly higher than Kiziltepe and a rock-chip sampling programme designed to test the extensions to outcropping zones returned grades up to 15.47g/t Au.

Crimson Tide 160p £10.5m (TIDE.L)
The provider of the mpro5 solution provides a trading update. The Company expects to deliver EBITDA performance in FY23 of no less than £0.4m (FY22: LBITDA -£0.4m), ahead of the Board's prior expectation and a reduced loss before tax of c.£-0.7m (FY22: -£1.7m). Loss after tax is expected to be reduced to £-0.3m (FY22 -£-1.2m) and FY23 turnover is expected to be in line with the Board's current expectations. The Group's current cash position stands at £2.8m, with an R&D tax refund of an anticipated minimum of £0.3m due imminently. The Group is continuing to deliver its objective to build a high growth long-term SaaS business with strong recurring revenues.

Crossword Cybersecurity* 8.5p £8.0m (CCS.L)
The cybersecurity solutions Company focused on cyber strategy and risk announces a trading update for the year ending 31 December 2023. In the first half of 2023 Crossword shifted its focus to establishing a clear path to profitability with its current suite of products and dedicated staff, which continues to be their strategy. In the second half of 2023, revenue growth has not been as strong as expected and conversion from pipeline to contracts has slowed. Crossword expects FY23 revenue to be in the range of £4.1m to £4.3m, as opposed to the previously guided £6m of revenue. Net losses before taxation expected to be broadly in line with current market expectations. The Company has previously guided to 2024 revenue of c£8m, but now believes that revenue is more likely to be c.£7m for 2024.

Fusion Antibodies 3.95p £2.3m (FAB.L)
A Company focusing on pre-clinical antibody discovery, engineering and supply for both therapeutic drug and diagnostic applications announces that it has signed a collaboration agreement with the National Cancer Institute (NCI) for the use of OptiMAL in the discovery of novel antibodies against targets selected by NCI. Under the terms, Fusion will provide access to the OptiMAL technology to NCI for deployment against an agreed number of targets, being primarily cancer targets, over a period of up to two years following which, OptiMAL technology and jointly publish any results from the collaboration.

Good Energy Group 362p £61.2m (GOOD.L)
The 100% renewable electricity supplier and energy services provider issues a trading update for the 10 months to 31 October 2023. Good Energy expects to deliver earnings ahead of the Board's expectations for the full year seeing a profit before tax of at least £4m. The forecast loss in H2 2023 is now expected to be reduced, as weather conditions through the early winter have been generally mild and renewable generation has been stable. The Company's trading to the end of October has been ahead of expectations.

Journeo 230p £37.9m (JNEO.L)
A provider of information systems and technical services to transport operators and local authorities reports an update on trading for the year ending 31 December 2023 (FY 2023). The Group expects to deliver revenue for FY 2023 of approximately £46m, ahead of market expectations. Strong sales order intake in Journeo's core Fleet Operator Systems and Passenger Information Systems businesses continues past £27m achieved for FY 2022 giving good forward earnings visibility into FY 2024. The Company expects adjusted profit before tax of c.£3.9m ahead of market expectations.

Kinovo 49.5p £31.1m (KINO.L)
The property services group that delivers compliance and sustainability solutions announces its unaudited interim results for the six months ended 30 September 2023 (Period). Revenue increased by 2% to £30.3m (H1 2023: £29.8m), as a result, gross profit is up 9% from £7.71m to £8.40m, adjusted EBITDA is up 21% to £2.9m (H1 2023: £2.4m) and the Company holds net cash of £1.0m (H1 2023, net debt: £56k). The Company announce that their three-year visible revenues increased to £157.0m (FY 2023: £146.4m) with 95% of revenues recurring and their satellite office is established in Dereham, Norfolk following strong interest in the Company’s services in the East of England. The Group is trading in line with the Board's expectations for the full year.

Molecular Energies 89p £9.2m (MEN.L)
The international energy Company provides an update relating to G-Mobility and CPH2. G-Mobility, a subsidiary of Green House Capital, the green division of Molecular which is progressing a spin out and IPO notes the RNS announcement of Clean Power Hydrogen PLC (CPH2) made today in relation to a non-binding framework agreement having been signed between G-Mobility and CPH2.Under the non-binding framework agreement the parties will explore a licensing arrangement for the manufacture and sale of CPH2's electrolysers in the Mercosur trading bloc of countries in South America.

Totally 6.6p £13.0m (TLY.L)
A provider of frontline healthcare services, corporate fitness and wellbeing services across the UK and Ireland announces the appointment of Simon Stilwell to the Board of Directors with immediate effect. Simon Stilwell will initially join the Board as a Non-Executive Director and as Chairman designate and will become the Company's Non-Executive Chairman with effect from 1 January 2024. Simon is currently a Non-Executive Director of Gresham House plc and has over 26 years' experience in the City.

28 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


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