Small Cap Feast

29th January 2024

Dish of the day
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Dish Of The Day:


Western Selection (AQSE: WESP) has left the AQSE Growth Market.

Whats baking in the oven?

Potential Initial Public Offerings:

25 January: Media reports that London-based investment firm Fuel Ventures has launched a £50m venture capital trust (VCT) to be listed on the London Stock Exchange. The VCT has been launched with support from Titan Alternatives Ltd and will target 30 investments in high-growth tech innovation over the next three years. The VC firm said funds from the VCT will co-invest with the existing Fuel Ventures Enterprise Investment Scheme (EIS) portfolio.

12 Jan—The London Tunnels PLC announces its intention to seek admission to the standard segment of the Official List and to trading on the Main Market of London Stock Exchange plc (Admission). The Company plans to restore, adaptively reuse and bring back to life the Kingsway Exchange Tunnels in Central London, originally built in the early 1940s, and designed to shelter people during the London Blitz. The Company has successfully raised approximately £10m from investors and aims to admit its Ordinary Shares at a price of £2.00 per share to the Main Market of the London Stock Exchange. The Company is expected to have a market capitalisation of approximately £123 million on Admission Expected Admission to take place in January 2024.

2 October 2023: 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) and £3.1m fundraise and expected size of primary offer. 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 1 February 2024.

Reverse Takeovers:

Change of Market:

Banquet Buffet

Cambridge Nutritional Sciences 2.4p £5.7m (CNSL.L)
The specialist medical diagnostics Company focused on promoting a personalised and functional approach to health and nutrition announces the appointment of James Cooper as Operations Director. James joins from Chartwell Consulting where, since 2014, he was responsible for leading step change operational improvements across a wide range of manufacturing industries. Most recently James helped to increase the productivity of a large QC lab within a pharmaceutical company and boost the output capacity of a medical biomaterial company. James has a demonstrable track record in leading large teams and bringing together multiple departments to drive towards shared goals. He also has an MSci in Materials Science, and a BA Hons in Natural Sciences from Cambridge University.

Chariot Limited 8.625p £92.7m (CHAR.L)
The Africa focused transitional energy group provides an update on the outlook for 2024. Transitional Gas: (i) Onshore Morocco - Loukos Licence (Chariot, Operator 75%, ONHYM, 25%) first drilling campaign of two wells is on track to commence around the end of Q1 2024. (ii) Offshore Morocco - Moroccan regulatory approval of the Energean partnership transaction is expected shortly. On completion, US$10m will be payable to Chariot. Transitional Power: Operations at the 15MW Essakane solar project in Burkina Faso are running well and the development of the 40MW solar project at Tharisa continues to move forward. Green Hydrogen: Feasibility Study at Project Nour in Mauritania, in partnership with TEH2 (Total Energies 80%, Total Eren 20%) has now been completed and will be presented to the Government of Mauritania in Q1 2024.

Cohort 560p £232.4m (CHRT.L)
The Independent Technology Group announces that its subsidiary SEA has been awarded a £15.1m contract. The contract covers the production of SEA's lightweight Torpedo Launch Systems (TLS) for a major naval vessel programme. Work will commence immediately and is expected to complete in 2030. SEA's TLS is a rapid-reaction system capable of firing a variety of NATO standard lightweight torpedoes. This contract will be delivered by SEA's wholly owned Canadian subsidiary, SEA Canada, supported by a team at SEA in the UK.

EKF Diagnostics 30.5p £140.7m (EKF.L)
The global diagnostics business provides an unaudited trading update for the year ended 31 December 2023. The Company expects to report full-year revenues and adjusted EBITDA in-line with management expectations, reflecting continued growth from the Point-of-Care division and sales of Beta-Hydroxybutyrate (ββ-HB). Cash, net of bank borrowings, as at 31 December 2023, was £4.4m. Good progress continues to be made in the Life Sciences division’s fermentation capacity expansion. Purchase orders for precision fermentation services using the new facility have been received and the Company continues to onboard a number of customers. The Board anticipates that a steady build-up of revenues generated from the new fermentation capacity through 2024, alongside maintained growth across Point-of-Care and ββ-HB sales.

European Metals Holdings 15.75p £32.7m (EMH.L)
The Company focused on advancing the Cinovec vertically integrated battery metals project in the Czech Republic announces the granting of an extension to all four Cinovec Exploration Licences until 31 December 2026. The granting of this extension follows a comprehensive evaluation by the relevant state authorities of results achieved to date in exploring the deposit. Plans for future exploration work, including further resource drilling, and compliance with conditions set by the Czech Ministry of Environment were also assessed. The licences extension applies to the Exploration Areas Cínovec, Cínovec II, Cínovec III and Cínovec IV, which fully cover the East, South and NorthWest Preliminary Mining Permits.

Inspecs Group 64.5p £65.6m (SPEC.L)
The designer, manufacturer, and distributor of eyewear (sunglasses, optical frames, lenses and low vision products) announces a trading update for the year ended 31 December 2023. FY23 revenue of £200.3m was broadly flat on 2022 (£201.3m), below expectations. The Group expects to report a 16.1% increase in unaudited Adjusted Underlying EDITDA to £18.0m (2022: £15.5m). Operational efficiencies have driven an increased EBITDA margin, with continual progress expected in 2024. Net debt (excluding leases) decreased by £3.3m during the year to £24.3m (31 December 2022: £27.6m). The new Vietnam facility is scheduled to come onstream in H1 2024. The Group remains focused on driving sales in 2024 and continuing to develop Group synergies to enhance performance.

Intercede 107.5p £62.6m (IGP.L)
The cybersecurity software Company specialising in digital identities announces the following orders: (i) New customer in the UK with a large aerospace and defence integrator, servicing a new deployment within HM Government, for MyID CMS with associated options for future product and licence expansion; (ii) New technology client for MyID CMS in the Middle East; and (iii) Enhanced professional services order to an existing client in the US federal space to assess and assist in a future deployment of MyID CMS. These orders, with an aggregate contract value in excess of £0.6m, underpin the Group's revenue for FY24 and creates contracted revenue backlog for FY25.

RUA Life Sciences 11.75p £7.3m (RUA.L)
The holding Company of a group of medical device businesses focused on the exploitation of long-term implantable biostable polymer (Elast-Eon) announces that with immediate effect Caroline Stretton, Group Managing Director, has resigned as a director of the Company and is leaving her role as Group Managing Director. The executive directors will continue to manage the Company supported by the non-executive directors. The Board is considering the appropriate longer term management structure of the Company and further announcements will be made in due course, as appropriate.

Safestay 24p £15.6m (SSTY.L)
The owner and operator of an international brand of contemporary hostels announces that it has refinanced its existing borrowings into a single £16m Term Loan and added a new £2.5m Revolving Credit Facility (RCF) to support future growth plans. The new Term Loan and RCF are for 5 years and were provided by existing lender HSBC. The Term Loan interest rates are £4.4m at 3.955%, £10m at SONIA but capped at 4.75% with a floor of 3% and £1.6m at SONIA, all with an additional margin of 2.6%. The RCF has a rate of SONIA plus a margin of 2.85%. The Term Loan is repayable at £0.1m per quarter from March 2025 together with a final payment at completion. The Term Loan replaces the previous interest only £12.745m facility with HSBC and enables the repayment of the outstanding CBILS loan of £3m which carried a significantly higher interest rate.

Surgical Innovations 0.65p £6.1m (SUN.L)
The designer, manufacturer and distributor of innovative technology for minimally invasive surgery provides a trading update for the year ended 31 December 2023, with sales marginally head of market expectations. Revenues are expected to be approximately £12.0m, an increase of 6% compared with the prior year (2022: £11.3m). The Group expects to report a positive adjusted EBITDA of £0.2m, in-line with expectations. Net cash balances stood at approximately £0.36m at 31 December 2023 (30 June 2023: £0.38m). The recently implemented operating efficiency programme, including the re-introduction of a five-day working week, is on track to deliver further improvements to the gross margin in 2024.

29 January 2024
*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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