Small Cap Feast

31st January 2024

Dish of the day
No Joiners today
Off the menu
No leavers today

Dish Of The Day:


SCS Group Plc (SCS.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

Coro Energy* 0.165p £4.7m (CORO.L)
The South East Asian energy Company with a natural gas and clean energy portfolio notes the announcement released by Conrad Asia Energy Ltd (Operator) the holder of a 76.5% operated interest in the Duyung Production Sharing Contract (PSC), offshore Indonesia, in which the Group has a 15% interest. The Operator provided an update in respect of, inter alia, activities in respect of the Mako gas project within the Duyung PSC during the quarter ended 31 December 2023. In doing so, the Operator has provided an update on the expected capital costs of the Mako development project and associated project timings. The update underpins both the robust economics of the Duyung PSC and the likely attractiveness of the project to debt providers and potential farm in partners.

Destiny Pharma 62p £51.9m (DEST.L)
A clinical stage biotechnology Company provides a clinical development update on two of its programmes. The Company announces positive data from a preclinical safety study of XF-73 Dermal, a novel dermal formulation for the treatment of antibiotic resistant skin infections associated with open wounds and broken skin. The product was well tolerated with no impact on any clinical or safety parameters and had no apparent negative impact on wound healing. In line with plans the Company's management has reviewed the Chemistry, Manufacturing and Controls (CMC) programme for NTCD-M3, its product candidate for the prevention of Clostridioides difficile infection and following this review, the Company, has now changed its contract development manufacturing organisation for NTCD-M3 in order to strengthen manufacturing for clinical trial material and improve future commercial supply.

Devolver Digital 19.5p £86.7m (DEVO.L)
A digital publisher and developer of indie video games announces the following changes to its Board and leadership team. Douglas Morin has stepped down from his role as CEO and Board member and will be succeeded by Harry Miller, Executive Chairman, who is appointed as CEO, with immediate effect. Harry is co-founder and former CEO of Devolver, establishing the Company in 2009. Devolver also announces that Kate Marsh, Senior Independent Director since Devolver's IPO in November 2021, has been appointed as Non-Executive Chair with immediate effect. Kate will step down as Chair of the Remuneration Committee to become Chair of the Nomination Committee and will continue to sit on the Remuneration and Audit Committees. The Company also announces that Graeme Struthers, Chief Operating Officer and co-founder of Devolver, will join the Board with immediate effect.

Directa Plus 21p £13.9m (DCTA.L)
A producer and supplier of graphene nanoplatelets based products for use in consumer and industrial markets announces its environmental services subsidiary, Setcar S.A. (Setcar), has renewed its contract with FORD Otosan, an automotive business in Romania owned by Ford Motor Company, to deliver Total Waste Management Services (TWM) for a total value of EUR1.9m, all of which will be invoiced in 2024. Following the acquisition of Setcar, the Group signed its first contract with FORD Otosan in 2020, and since then has increased the annual contract value by a total of c. 46%.

DXS International* 1.85p £1.3m (AQSE: DXSP)
The digital clinical decision support Company provides its unaudited interim results for the half year ending 31 October 2023. Revenue increased by 2.5% to £1.69m (2022 - £1.65m), and as a result (loss)/profit after tax of (£121.5k) compared to £27.6k in 2022. This decrease is mainly due to increased amortisation, increased interest charges and reduced tax benefit. The Company held cash at bank at the period end of £386.1k (2022 - £371.9k). The Company’s core recurring revenue model remains resilient. Post period and on 30 November 2023, the Company announced that it had jointly with Health Innovate East, won a UK Innovate Grant to the value of £409k to help accelerate ExpertCare’s route to market. The ability to achieve previous market guidance on turnover, which was anticipated at £3.8m by April 2024 and £4.7m by 2024 calendar year end, will be delayed.

Inspired Energy 78p £78.7m (INSE.L)
A technology enabled service provider supporting businesses in their drive to reduce energy consumption announces a trading update for the financial year ended 31 December 2023 (FY23). Group revenue is expected to be c.11% ahead of FY22, at c.£98.7m, as a result, Adjusted EBITDA grew 19% to £25.0m (2022: £21.0m). Group adjusted profit before tax is expected to be in line with market expectations and net debt at 31 December 2023 was c.£48.7m. Assurance Services continued to see momentum in new business generation, with improved churn rates, higher retention rates and margins broadly in line with H1 2023. The Group is confident in the outlook for FY24.

Inspiration Healthcare Group 41.5p £28.3m (IHC.L)
The medical technology Company developing specialist neonatal intensive care medical devices announces a trading update for the year ended 31 January 2024 (FY24). The Company expects to report revenues for FY24 of £37.0m, which is below current market expectations. This mainly relates to a delay to one material export order that was due to be shipped during the current financial year and is now expected to be shipped early in FY25. As a result of the timing difference, net debt is approximately £6.4m. The Company has sought a covenant waiver from its lender in respect of the 31 January 2024 covenant test date.

Ingenta 162.5p £23.6m (ING.L)
A software and services provider to the publishing and media industries provides the following trading update for the year ended 31 December 2023. Revenue marginally increased by 3% to £10.8m (2022: £10.5m), and as a result, adjusted EBITDA increased by 10% to £2.2m (2022: £2.0m). The Company announced profit before tax of £1.7m, an increase of 42% (2022: £1.2m) and holds a year-end cash balance of £2.7m. The Group further reports the addition of three new customers onto their IP management platform, and these will drive recurring revenue into 2024 and beyond.

Ondine Biomedical 10.5p £23.8m (ODI.L)
Research presented by Canadian life sciences Company, at the SPIE Photonics West conference in San Francisco, California shows that treatment with its Steriwave Nasal Photodisinfection System significantly reduces pathogens in the nose - a reservoir for bacteria - yet does not produce long-term adverse effects on the nasal microbiome. Upon analysis of nasal swab samples, the research demonstrated an immediate and highly significant (99.9+% ~3 log10) reduction in viable bacterial cells and number of species, sustained for at least 24 hours. Moreover within a week, the microbiome rebounded to its original diversity and quantity. These findings support Steriwave as an efficient, short-acting, and non-selective method of nasal decolonisation.

Skillcast Group 28p £25.0m (SKL.L)
The provider of SaaS compliance platforms and off-the-shelf e-learning announces a trading update for the year ended 31 December 2023. Revenue for 2023 is expected to be c. £11.3m, 15% higher (2022: £9.8m) and driven by organic and strong growth in recurring subscription revenues. ARR grew by 37% from £6.8m in December 2022 to £9.3m in December 2023, driven by new customer acquisition and sales of new products. LBITDA is expected to be £0.8m (2022 LBITDA: £0.3m) and the Group's net cash position at 31 December 2023 was £7.2m. The Company aims to return to profitability in the second half of 2024.

31 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


Our daily digest of news from UK listed Small and Mid caps straight to your Inbox.


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 with “unsubscribe me”.

© Copyright 2024 - Hybridan | Website by Boxed Up Media
First Visit
bookcrossmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram