Small Cap Feast

30th January 2024

Dish of the day
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Dish Of The Day:


DX Group Plc (DX..L) has left AIM.

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:

30 January: Location Sciences Group Plc is proposing to acquire the entire issued share capital of Sorted Holdings Limited (Sorted) for a nominal consideration of £1.00 (Acquisition). Sorted operates a software-as-a-service (SaaS) business model providing delivery experience software which serves ecommerce retailers - from large, global enterprises to smaller, independent start-ups. Pursuant to Rule 14 of the AIM Rules for Companies, the Acquisition constitutes a reverse takeover. Capital to be raised on Admission is approximately £2.0m via a subscription for new Ordinary Shares. Anticipated market capitalisation on Admission is approximately £6.68m. Expected AIM Admission date is 19 February 2024.

Change of Market:

Banquet Buffet

Argentex Group 56.9p £64.5m (AGFX.L)
The provider of currency management and payment solutions to international institutions and corporates, issues a trading update for the year ended 31 December 2023. The Board now confirms that it expects revenues for the twelve months to 31 December 2023 of approximately £49.8m, compared to £50.4m for the twelve months to 31 December 2022, and operating profit of not less than £8.0m, compared with £11.3m for the same period in 2022. Argentex further announces the appointment of Guy Rudolph as Interim Chief Financial Officer with effect from 31 January 2024. Guy is a qualified chartered accountant and began his career at PwC before joining Vodafone where he spent 16 years.

Cambridge Cognition Holdings 52p £18.2m (COG.L)
A Company which develops and markets digital solutions to assess brain health, announces a trading update for the year ended 31 December 2023. Revenue growth of 7% to £13.5m (2022: £12.6m), however adjusted operating loss was £1.2m for the year (2022: £0.1m profit), albeit better than market expectation. The Company holds cash balance of £3.2m at 31 December 2023 (31 December 2022: £8.3m). During 2023 the Company announced acquisitions of eClinicalHealth Limited (Clinpal) and Winterlight Labs Inc both of which have been fully integrated into the Group and annualised cost savings in excess of £1.5m have been realized. The contracted order book remains at the end of 2023 at £17.2m (£17.6m at 31 December 2022), with at least £8.0m expected to be recognised as revenue in 2024.

hVIVO 28.75p £195.6m (HVO.L)
A Company focusing in testing infectious and respiratory disease products using human challenge clinical trials, announces an unaudited trading update for the year ended 31 December 2023. Full year revenue of £56.0m, an increase of 15.5% (2022: £48.5m), EBITDA margins increased to c.22% (2022: 18.7%) and the Company held cash of £37.0m as at 31 December 2023 (31 December 2022: £28.4m) The Company have a weighted contracted orderbook of £80m as at 31 December 2023 (31 December 2022: £76m). As a result of the current strong outlook and performance of the business, the Company expects to achieve revenues of £62m in 2024.

Kromek Group 5.8p £34.8m (KMK.L)
A developer of radiation and bio-detection technology solutions for the advanced imaging and CBRN detection segments, announces its unaudited interim results for the six months ended 31 October 2023. Revenue increased to £7.1m (H1 2023: £6.8m) and gross margin improved to 54.2% (H1 2023: 40.4%). Adjusted EBITDA loss reduced to £0.1m (H1 2023: £2.7m loss). Loss before tax reduced to £3.5m (H1 2023: £5.7m loss) and the Company had cash and cash equivalents at 31 October 2023 of £3.7m (30 April 2023: £1.1m). The Company announced a new collaboration agreement entered, post period, with a global blue-chip technology solutions provider to develop CZT-based detectors for photon counting CT applications in medical imaging and the Company remain on track to deliver record revenues for full year 2024 and positive EBITDA.

Northcoders Group 152.5p £12.2m (CODE.L)
A UK technology training business, provides the following trading update for the year ended 31 December 2023 . Unaudited revenues for the period increased by 27% to £7.1m (FY-2022: £5.6m), driven by accelerating demand for digital training and the Group has £1.6m of cash as at 31 December 2023 and net cash of £0.8m. In FY-2023 Northcoders' core B2C Bootcamp Division experienced record growth, receiving 8,535 registrations (FY-2022: 4,615) across its software development, data engineering and cloud engineering (DevOps) programmes. The Group reports that underlying FY-2023 trading is in line with revised market expectations.

Petards Group* 4.5p £2.5m (PEG.L)
The developer of advanced security and surveillance systems, announces that its subsidiary, QRO Solutions (QRO), has been recently awarded an order worth £0.4m for Artificial Intelligence (AI) enabled ANPR cameras. The order is the first for the supply and installation of QRO's newly developed Harrier AI ANPR cameras. The project forms part of a three year programme being undertaken by the end-user, with QRO having already secured and supplied other roadside ANPR equipment for the first year in 2023. This new order is expected to be fully delivered during 2024. The cameras will be installed at several strategic highway locations in the UK allowing QRO the opportunity to showcase the Harrier AI nationally to existing and potential police force customers.

Pressure Technologies 32p £12.4m (PRES.L)
The engineering group, announces its audited results for the 52 weeks to 30 September 2023 (FY23). Group revenue increased 29% to £32.0m (2022: £24.9m) as a result gross profit was up 68% to £8.9m at 28% margin (2022: £5.3m at 21% margin). Adjusted EBITDA increased to £2.1m (2022: Adjusted EBITDA loss of £0.9m) and adjusted operating profit increased to £0.6m (2022: adjusted loss of £2.6m). The Company holds net debt of £2.4m (2022: £3.5m); Net bank borrowings, excluding asset finance lease liabilities and right of use asset lease liabilities, of £nil (2022: £0.6m). The Board expects the Group's full-year FY24 revenue and adjusted EBITDA to be in-line with current market expectations.

Synectics 157.5p £28.0m (SNX.L)
A Company focusing on security and surveillance systems, announces that it has been awarded further contracts as part of a framework agreement with National Grid. The additional contracts, valued at approximately £4.0m, and will see Synectics deliver security improvement works across 13 new sites. Synectics was awarded its first contract under the framework agreement with National Grid in October 2022, and will now be deploying its services across 20 sites throughout National Grid's substantial estate. The works covered by these contracts are planned for completion in FY 2024.

Zenova Group 2.75p £2.9m (ZED.L)
The fire suppression and interdiction solutions Company, affirms the continued success of its recently announced B2B strategy in the signing of another European distribution agreement in Romania, with a partner attracted by the Company's certification standards across its paints and extinguisher products. The non-exclusive agreement between the Company and its new partner, Distreo SRL, covers the full suite of Zenova fire and temperature management products. Distreo has already paid for a pre-order lot of 500 of the Company's FX500 extinguishers and already launched a Romanian market specific website selling the Zenova FX500 aerosol extinguishers to end clients.

1Spatial Holdings 53p £58.7m (SPA.L)
A Company focusing on Location Master Data Management (LMDM) software and solutions, has secured a three-year contract with a Distribution System Operator for electricity and gas networks in Belgium. The contract is for geospatial data processing services and will see 1Spatial's 1Integrate product used for its unique data quality control and data validation capabilities, alongside 1Spatial's geospatial data production services. The total contract value to 1Spatial is EUR9.0m of which 1Spatial will deliver EUR4.1m including EUR0.3m in term software licence revenue. 1Spatial will utilise partners to deliver the balance of the work, with a total value EUR4.9m, over the three-year duration of the contract.

30 January 2024
*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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