Admissions:
GenIP (GNIP.L) listed today on the AIM market raising £1.75m at 39 pence per share at a £6.8m market cap. GenIP is a portfolio company of London-based intellectual property investor Tekcapital PLC (TEK.L) who still own 63% of GEN. Its platforms provide analytic services to help companies, research institutions and venture funds assess and commercialise new discoveries. GenIP combines expert human technical review with GenAI algorithms to provide insightful and verified services. The proceeds from the placing are to launch a comprehensive ecommerce sales and marketing programme (approx.£450,000), provide general working capital (approx. £750,000) and meet the costs and expenses of the Fundraising and Admission which are approx. £550,000.
Delistings:
Darktrace Plc (DARK.L) delisted today from the Main market.
Potential **** Initial Public Offerings:
ITF announced:
30th September 2024: Applied Nutrition, the sports nutrition, health and wellness brand announced that it is considering an IPO onto the LSE Main Market. Across the four ranges, the Group sells approximately 100 different products, with flavour and format combinations across those products resulting in over 500 stock keeping units. July 2024 YE numbers reported revenue of £86m and EBITDA of £25.9m. Offer details TBC but it would comprise existing shares to be sold by certain existing shareholders of the Company.
Coinsilium Group 1.8p £3.9m (AQSE: COIN)
This Web3 investor, advisor, and venture builder has entered into an agreement with Stabolut Limited; a decentralised, crypto-backed, and yield-generating stablecoin venture. It will provide strategic advisory services in support of Stabolut’s forthcoming stablecoin and governance token launch slated for launch in Q4 2024. The stablecoin is backed by cryptocurrencies like Bitcoin and Ethereum, providing enhanced decentralisation and independence from traditional financial systems. Coinsilium will support Stabolut’s go-to-market strategy.
Inspiration Health 21.5p £19.3m (IHC.L)
Interims to July from this pioneering live-saving neonatal (newborn) intensive care MedTech holding company reported revenues of £17m, which is down from £20m. The Operating loss increased to £2m from £0.6m while gross margin fell to 43.5% from 48.6% due to the sales mix. The adjusted EBITDA loss of £0.9m is down from £1.8m. H2 will include the largest single order placed with a value of $4.3m for the SLE6000 ventilator. The net debt increased to £6.8m after a £3m fund raise at 14p. Roy Davis expects revenues for January FY25 to be H2 weighted as there is a strong orderbook and pipeline. The sales mix, however, will continue to impact gross margins and consequently earnings expectations for the full year.
Intelligent Ultrasound Group 11p £36.9m (IUG.L)
This ultrasound AI software and simulation company completed the sale of its Clinical AI Business (Intelligent Ultrasound Limited and certain other clinical AI related assets) to GE HealthCare for an enterprise value of £40.5m on a cash free/debt free. The equates to 12.4p per share which valued the Clinical AI Business at almost 34x its 2023 full year revenues. The disposal excludes the NeedleTrainer product range which is retained within the remaining medical Simulation Business. This business generated total revenues of £10m in the year to December 2023. The cashed-up management are reviewing the Simulation Business and evaluating the growth potential of the medical simulation market and the capital requirements of expanding the existing operations. The rest of the £40.5m sales proceeds are likely to tax efficiently distributed. Further news is expected on the distribution and the investment plans after the capital reduction AGM which is on the Tuesday 15th October.
One Heritage Group 6p £2.32m (OHG.L)*
A UK-based residential developer, development manager and property manager, focused on the North of England announces a comprehensive restructuring plan, to include a rebrand, that will position it for sustainable growth, financial stability, and enhanced market presence. It exchanged contracts unconditionally to acquire a 30% stake in the company that owns the One Victoria in Manchester which has a Gross Development Value of £39.5m. The acquisition will be funded by drawing down £3m from the remaining shareholder loan facility, increasing the facility from £11m to £14m. The Company has also exchanged contracts unconditionally for the sale of a portfolio of completed residential and commercial properties, valued at £7m. Proceeds will be utilised to reduce the Existing Facility from £14m to £9m. The balance of approximately £2m of the Existing Facility will then be written off by OHPD as part of the restructuring. As part of this restructuring, OHPD(UK) entered into a new £7m loan agreement with OHUK at an interest rate of 6%. It is considering a move to the AQUIS market or a delisting and it is rebranding to Zentra Group PLC.
Physiomics 0.7p £1.42m (PYC.L)*
PYC launches its new Biostatistics services which is a complementary additional service for this mathematical modelling and data science company as it leverages existing expertise and capabilities across the core Modelling and Simulation service line. Biostatistics is an essential component of clinical research helping clients with drug development. It plays a pivotal role in the setup, conduct and reporting of all trials, regardless of therapeutic area, ensuring studies are well designed, data is accurately collected and analysed, and the results are interpreted correctly. There is a compelling strategic rationale for the launch as it opens a significant market, giving greater opportunity to scale. Physiomics has also expanded its Data Science and Bioinformatics services. As both service lines use the same business model and similar expertise across mathematics and data science, it allows greater operational flexible to meet demand and maximise utilisation.
Renalytix 8.5p £28.4m (RENX.L)
Renalytix closed its ‘book-build’ funding at a 12.5% premium rising £11.8m at 9p. Directors and Mount Sinai Ventures fund took 11% of the new shares. It is an artificial intelligence-enabled in vitro diagnostics company, focused on optimising clinical management of kidney disease to drive improved patient outcomes and advance value-based care. Action has been taken to substantially reduce the monthly cash burn and the orders intake is reported to be growing quarter-on-quarter. The management believe these factors, combined, will take the Company to profitability and cash flow break even in approximately two years and that there potential to generate revenue of approximately $17.5m in FY27.
Transense Technologies 175p £25.9m (TRT.L)
Translogik, a division of Transense , the provider of specialist sensor systems announces a strategic distribution partnership with AssetFindr. It is a provider of advanced maintenance management software and internet of things (IoT) device solutions, headquartered in Indonesia with a customer base across Southeast Asia. The collaboration opens a new sales region for Translogik, bringing its cutting-edge tyre inspection and data capture tools to market for the first time in Southeast Asia along with AssetFindr's TyreOptimaX module. The partnership will see Translogik's wireless tyre inspection tool integrated into AssetFindr's platform, enabling fleet operators to streamline tyre management, so providing real-time tyre data, enhancing efficiency, reducing downtime, and improving tyre procurement.
Tungsten West 3p £5.66m (TUN.L)
A mining company focused on restarting tin production at the Hemerdon tungsten and tin mine in Devon reports its finals to March 2024 and trading of its shares are now restored. On revenue of £722,036, there was a reduced operating loss of £7.25m. There is a legacy tungsten pre-concentrate and tin concentrate totalling 50 tonnes and the Company entered a strategic collaboration with the fusion energy company, Oxford Sigma. A new Board is appointed with new Non-Executive Directors, Mr Guy Edwards, Mr Adrian Bougourd, and Mr Kevin Ross and Alistair Stobie appointed as Chief Financial Officer. At the March year-end, the net cash was £1.6m and by the end of September cash reserves have fallen to £0.04m. The Group is in the process of finalising the documentation in respect of a £2.0m funding round with its existing CLN holders. The Group has received letters of commitment from the CLN holders that they will provide the Tranche F funding and extend the waiver that expired in June 2024. There are very limited cash reserves and its reliant upon this Tranche F funding being received. If its not received or was delayed, these limited cash reserves are forecast to be exhausted in October 2024. Following the expected Tranche F CLN issue, going concern is also reliant on further funding being secured by the end of December 2024, without which the Group would be unable to pay its liabilities as they fall due beyond this point.
Westminster Group 2.3p £7.6m (WSG.L)
The international supplier of managed services and technology-based security solutions reports a £1m contract to provide a range of security services to a major international services organisation. This important new global client provides its services to governmental clients in over 90 countries and is a strategic expansion of Westminster Group's recurring revenue.
XLMedia 9.75p £25.2m (XLM.L)
XLMedia reported Interims to 30 June, which show significant changes having sold its Europe and Canada assets to Gambling.com Group for a total consideration of up to $42.5m. It received an initial consideration payment of $20m on 2 April 2024 and the second payment of $10m is due to be received (today) 2 October 2024. An initial return of capital to shareholders is anticipated in Q4 2024. Revenue from continuing business in H1 is $10.4m and the adjusted EBITDA came in at $0.9m. The strategic focus is on driving organic revenues in North America and rightsizing the cost base while continuing to explore opportunities to create shareholder value.
.
Status of this Note and Disclaimer
This document has been provided as a general market commentary and is issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as investment advice; a recommendation; an offer to sell; nor 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 such action. The information has been provided without taking into account the investment objective, financial situation or needs of any particular person. Recipients should make their own investment decisions based upon their own financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.
As market commentary, this document is not investment research or a research recommendation for regulatory purposes as it does not constitute substantive research or analysis. It is not subject to any prohibition on dealing ahead of the dissemination of investment research although Hybridan LLP maintains related internal systems and controls in connection with such dealing.
This document should not be relied upon as being an independent or impartial view of the subject matter. The individuals who prepared this document 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.
This document is not intended to be an invitation or inducement to engage in investment activity. 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 categorised by Hybridan LLP as either a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority's Conduct of Business Sourcebook) (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 avoidance of doubt, 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.
The information contained in this document is based on materials and sources that are believed to be reliable; however, they have not been independently verified and are not guaranteed 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. The information may contain projections or other forward-looking statements regarding future events, targets or expectations. There is no assurance that such events or expectations will be achieved, and actual results may be significantly different from that shown here. The information is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. Any and all opinions expressed are current opinions as of the date appearing on 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.
References to specific securities, asset classes and financial markets are for illustrative purposes only. Past performance is no guarantee of future results. Information and opinions presented have been obtained or derived from sources which Hybridan LLP reasonably believed to be reliable however no representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information in this document nor should it be relied upon as such.
To the fullest extent permitted by law, none of Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings shall have any liability whatsoever for any losses arising in any way from use of all or any part of the information in this document including, for the avoidance of doubt, direct or indirect or consequential loss or damage (including lost profits).
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 or any other jurisdiction in any part of the world.
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.
Unless otherwise stated, Hybridan LLP owns the intellectual property rights and any other rights in this document. 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.
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.
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 enquiries@hybridan.com with “unsubscribe me”.
