Small Cap Feast

30th June 2023

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Today’s Small Cap Feast is dedicated to the life of Brian Winterflood The founder of Winterflood Securities and who was integral to the formation of AIM He will be greatly missed by the City and we express our deepest condolences to his family RIP


Dish Of The Day:

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Off The Menu:
Early Equity Plc has left the AQSE Growth Market.

What’s Cooking In The IPO Kitchen?

Ora Technology plc, a software company developing a digital carbon trading platform, offering users the ability to buy, sell and retire verified carbon credits in the voluntary carbon market, intends to join the AQSE Growth Market. Ora’s platform aims to allow access to carbon assets - and the broader carbon economy - with the goal of reducing the complexity of current industry practices, and an emphasis towards providing a simple and intuitive user experience.

Praetura Growth VCT plc, a newly established VCT announces its intention to float on the Main Market of the London Stock Exchange. The Company will provide growth funding to scalable businesses predominantly based in the North of England, across a range of sectors including technology and healthcare. The Company will be managed by Praetura Ventures Limited, a venture capital and EIS business associated with the wider Praetura Group, a Manchester based venture capital investor and small business lender. The Company is targeting to raise £10m at 1 pence per share, via an offer for subscription. The Directors will have the option to utilise an over-allotment facility that will allow the Company to issue a further 10m Ordinary Shares under the Offer.

CAB Payments Holdings Limited a market lender to business to business (B2B) cross-border payments and foreign exchange, specialising in emerging markets intends to join the Premium Segment of the Main Market. The Group announced revenues of £41.3m for the three months ended 31 March 2023 with the YTD adjusted EBITDA margin at 64%. The Offer is expected to comprise a secondary sell-down of existing ordinary shares by Merlin Midco Limited (a wholly owned subsidiary of Helios Investors III, L.P. and Helios Investors III (A), L.P.) CAB Payments has set an offer price of 335p per share, which will give it a debut market cap of £851.4m. Admission currently expected to occur in July 2023.


Breakfast Buffet

Asimilar Group 1.5p £1.9m (AQSE:ASLR)
The investment group focused in the technology and software sectors announces its unaudited results for the six months ended 31 March 2023. Loss for the period was improved to £1m (H1 2022: loss of £10.6m), mainly driven by the unrealised loss on the value of the Group's holding in Launchmycareer Holdings plc (formerly Veative Holdings Plc). Net assets was £5.4m (30 September 2022: £6.5m), in part reflecting the unrealised loss on the LMC investment of £0.5m. The net asset value per share decreased to 4.67p (30 September 2022: 5.53p). Post period, the Company cancelled its trading on AIM to reduce costs. The Directors have not taken any fees since December 2022 and continue to defer these until the Company has sufficient liquid assets to meet them.

EDX Medical Group 3.38p £9.28m (AQSE:EDX)
The developer of innovative digital diagnostic products and services supporting personalised treatment solutions for cancer, heart disease, neurology and infectious diseases, announces that it has received a strategic investment of £500k from Boru Ltd via a subscription of 6,250,000 new ordinary shares at a price of 8p per share. Boru is a private investment company which invests in growth companies on a global basis. EDX Medical will use the investment from Boru to support the expansion of its capabilities in personalised care for cancer patients in the UK and Europe.

Ethernity Networks 2.1p £2.9m (ENET.L)
The supplier of data processing semiconductor technology for networking appliances, announces its audited results for the year ended 31 December 2022. Revenues increased by 11.5% to $2.94m (2021: $2.64m), while gross margins declined by 17.82% to $1.6m (2021: $1.9m). EBITDA Loss increased by 27.6% to a loss of $6.4m (2021: $5.05m). During the period, the Company made progress in the commercialisation of its Data Processing Unit (DPU) System-on-Chip (SoC) devices with a 200% growth over 2021, driven by the shipment of the ENET DPU SoC to its U.S. fixed wireless system provider customer. The orders from this customer remains on track for 2023 and is forecasted to increase for 2024.

Harvest Minerals 3.13p £5.8m (HMI.L)
The fertiliser producer provides an update on H1 2023 sales of its organic, multi-nutrient, direct application fertiliser, KP Fértil®, from its 100% owned Arapuá Fertiliser Project in Brazil. Total news sales orders invoiced and delivered for H1 2023 was 27,000 tonnes versus the budget of 60,000 tonnes. An additional 33,000 tonnes of advanced sales that had been invoiced in 2022 but did not meet the definition of revenue in the year under accounting standards will be included in FY 2023 revenue. Following the record high global fertilizer prices seen in 2022, stocks returned to normal levels in 2023 causing the price of fertilisers to drop. Farmers have postponed the purchase of fertilisers in anticipation of a price drop. Given the uncertain market conditions, the Company has revised its 2023 invoiced sales target from 200,000 tonnes to 120,000 tonnes. Furthermore, the Company is cutting prices to encourage farmers to start buying.

Induction Healthcare 22.5p £20.8m (INHC.L)
The digital health platform driving transformation of healthcare systems, provides an update on trading and other changes following the year ending 31 March 2023 (FY23). The Company remains on track for growth and cash breakeven in 2024. INHC has completed the sale of Switch, a directory app, for an undisclosed sum. The consideration has been applied to working capital. This is in line with the strategy to focus on sustainable growth and cost savings. The Board also announces the appointment, effective immediately, of Paul Tambeau as CEO (currently interim COO) and John McIntosh as CFO (currently interim CFO). Both are appointed as board members. Christopher Samler, currently executive Chair, will resume his previous position as non-executive Chair.

MediaZest* 0.045p £0.6m (MDZ.L)
The creative audio-visual company announces its unaudited interim results for the six months ended 31 March 2023. Revenue was £1,054,000, down 25% (2022: £1,402,000) due to delays to client projects, subsequently happening in the second half of the financial year. Gross margin rose to 57% (2022: 54%) with a greater percentage of revenue generated from higher margin managed services than from hardware sales. EBITDA loss was £148k (2022: profit of £138k) and a net loss for the period after tax was £260k (2022: profit of £40k). During the period, the Group provided digital signage solutions to another tranche of stores between October and December 2022 for a long-standing client, Pets at Home, and continued to deliver new dealership experiences for Hyundai. The Group also added a new large global automotive client, providing solutions in one European territory which it expects to expand to further substantial work in the coming months. The Board believes the outlook for the remainder of the financial year is encouraging, with projects delayed from the first half of the year have now commenced and some are completed.

Pod Point 70.5p £108.7m (PODP.L)
The UK-based provider of electric vehicle (EV) charging solutions, announces that it has signed a partnership agreement with UK Power Networks, the UK's largest Distribution Network Operator, serving 8.3m homes and businesses across London, the South East and East of England. The agreement will see Pod Point provide flexibility services to UK Power Networks by adjusting EV charging schedules to better match renewable generation. With user permission, Pod Point will schedule EV charging away from peak periods to help balance the grid, while ensuring cars are charged when needed. The partnership follows the launch of Pod Point's new Grid business unit.

Renalytix 112.5p £105.5m (RENX.L)
The developer of artificial intelligence-enabled clinical in vitro diagnostic solutions for kidney disease, announces that the U.S. Food and Drug Administration (FDA) has granted De Novo marketing authorisation for its KidneyIntelX.dkd™ prognostic test. This affirms KidneyIntelX as a first-in-class, artificial intelligence enabled prognostic testing platform to guide care management for adults with type 2 diabetes and early-stage chronic (diabetic) kidney disease. Renalytix believes FDA authorisation will lead to increasing test adoption, informing clinical guidelines, expanding insurance coverage, and pursuing additional international regulatory approvals.

SEEEN 3p £2.8m (SEEN.L)
The media and technology platform that delivers AI-led Key Video Moments to drive increased views and revenues across all video content, announces its audited results for the year ended 31 December 2022. Total revenues decreased to $3.3m(2021: $8.5m), reflecting: (i) elimination of unprofitable revenue from CSP channel partners with no technology upselling potential; (ii) loss of all CSP advertising revenue in Russia since the start of the Ukrainian conflict. Adjusted EBITDA loss improved to $0.8m (2021: Loss of $1.5m), in line with current market expectations. Gross margin increased to to 15.2% from 10.6% in 2021, through profitable channel partners for its YouTube CSP and the increase of recurring technology sales. During H1 2023, there were two strategic customer wins combined worth in excess of $1m in revenues and $250k in gross profit annually. The cash position as at 29 June of $2.2m enables the Group to continue executing on sales pipeline and achieve cash flow breakeven.

TPXimpact Holdings 36.0p £33.2m (TPX.L)
The technology-enabled services company focused on people-powered transformation, provides an update in relation to its debt covenants with HSBC. Further to the announcements made on 31 January and 31 March 2023, the Board reports that it has agreed a reset of the covenant terms applicable to its £30m revolving credit facility with HSBC. Following a waiver of covenants at 30 June 2023, the Group will need to maintain minimum cash liquidity levels on a monthly basis and also meet minimum Adjusted EBITDA performance levels on a quarterly basis. These terms will apply until the quarter ending 30 September 2024, at which time the covenants will return to the existing measures based on Net Debt/Rolling 12 month Adjusted EBITDA and Interest cover. Management believes that the updated covenant structure provides renewed stability for the business and a sound basis for achieving its performance goals.

30 June 2023
*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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