Small Cap Feast

31st January 2024

Dish of the day
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Dish Of The Day:


Admissions: 



Delistings:
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

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