Small Cap Feast

31st January 2023

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What’s Cooking In The IPO Kitchen?

Constance Iron Limited, whose principle activities will be the development and production of magnetite iron ore projects in Australia announces a consideration of an IPO and admission of shares onto the Standard Segment of the Main Market of the London Stock Exchange. The Company is targeting to raise gross proceeds of c. £60m which will be ustilised to fund the exploration and development to production of the Norseman Iron Ore Project where the Company has a 65% net profit interest in the Project.

Fulcrum Metals, a holding company of a mineral exploration group with base, precious and energy metal projects in Canada, intends to join AIM. On Admission, the Group's projects will comprise six gold and base metal projects in Ontario, Canada. The Group's projects are pre-discovery with large, diversified land packages that have either substantial historical samples or prospective geology and are located nearby mineral rich deposits or producing mines. Expected mid-February 2023.

Conviction Life Sciences, a newly established closed-ended investment company managed by Plain English Finance Limited, is seeking to list on Premium Segment of the Main Market of the London Stock Exchange, to invest in a conviction portfolio of life sciences and medical technology businesses, primarily in the UK, Europe and Australasia. The Company will invest in both Publicly Traded and Private companies - c. 70% and c. 20% of the total portfolio value respectively. The Company will target an annualised Total NAV Return of 20% over the long-term. Targeting to raise c.£100m. Delayed to 3rd February 2023.

Breakfast Buffet

BiVictriX Therapeutics 17.5p £11.6m (BVX.L)
An emerging biotechnology company applying a novel approach to develop next-generation cancer therapies with improved tolerability and anti-cancer activity, announces positive in vivo data from a toxicity evaluation study with BVX001, BiVictriX's lead programme, compared to gemtuzumab ozogamicin (GO). BVX001 reported to be well-tolerated and showed a favourable safety profile when compared with Mylotarg™ (gemtuzumab ozogamicin) in models evaluating the risk for neutropenia. Data from study provides preclinical validation of the Company's wider Bi-Cygni® platform approach in improving cancer-specific targeting across a range of cancer indications.

Cambridge Cognition 114p £39.5m (COG.L)
Cambridge Cognition Holdings, which develops and markets digital solutions to assess brain health, announces a trading update for the year ended 31 December 2022. Revenue is ahead of market expectations, increasing 25% to £12.6m (2021: £10.1m). The contracted order book has grown to £17.6m at 31 December 2022 (31 December 2021: £17.1m), increasing to £20.1m post-period end after acquisitions (eClinicalHealth limited acquired in October 2022 and Winterlight Labs Inc in January 2023). Profit after tax for the year, before acquisition costs, was £0.2m (2021: £0.5m). At 31 December cash balance of £8.3m (31 December 2021: £6.8m).

Cordel Group 5.75p £9.8m (CRDL.L)
The artificial intelligence platform for transport corridor analytics, announces unaudited results for the six months ending 31 December 2022. Total revenue increased by 50.3% in reported currency and 47.5% at constant currency to £945k. Underlying EBITDA for the period was a loss of £0.789m (2021: loss of £1.264m). During the period, the Company secured a new 5 year contract with Angel Trains to install fully-automated hardware onto passenger trains. The Company's engagement with USA railroads continues to improve, particularly following the release of its Automated Intelligent Clearance solution. New contracts combined with new analytic services released in 2022 and planned for 2023, is expected to produce further growth in recurring revenue.

DX Group 29.5p £176.2m (DX..L)
The provider of delivery solutions, including parcel freight, secure courier and logistics services, announces the appointment of Paul Ibbetson, Managing Director of DX Freight, as Chief Executive Officer of the Group. His appointment takes immediate effect and accordingly, Mark Hammond, Executive Chairman, relinquishes his executive role to become Non-executive Chairman. Paul has over 25 years' senior experience in the freight, parcels and logistics sectors.

Gusbourne 72p £43.8m (GUS.L)
The premium English sparkling wine producer, provides an unaudited trading update for the 12 months to 31 December 2022, reflecting another strong year of performance for the Company. Net revenue for the year ended 31 December 2022 is expected to be up by 48% to c. £6.2m (2021: £4.2m) reflecting continued robust sales growth across three main channels. Net debt at 31st December 2022 is expected to be approximately £12.5m. During 2022, the Company purchased a further 55 hectares of new land, increasing the total amount of freehold land to 196 hectares. The Company expects that most of this land will be planted with new vineyards over the coming years to further its growth platform. The Company continues to trade in line with market expectations.

Jade Road Investments* 2.25p £2.6m (JADE.L)
The London quoted pan-Asian diversified investment vehicle focused on providing shareholders with attractive uncorrelated, risk-adjusted long-term returns announces the publication of a circular containing a notice of general meeting to be held at 10 am on 20th February. The Company is intending to raise equity finance of up to US$1.75m at a price of 0.75 pence per Ordinary Share (using a pre-determined exchange rate of US$1.22 to £1). Placing Shares will account for 61.86% of the issued shares upon the completion of placing. The closing price on 30 January 2023 was 2.55 pence.

LifeSafe Holdings 42.5p £9.4m (LIFS.L)
A fire safety technology business with innovative fire extinguishing fluid and fire safety products, provides a trading update (subject to audit) for the year ended 31 December 2022 (FY22). Following a busy Christmas period, sales growth through the Group's consumer channels has further exceeded its expectations for FY22. Revenue for FY22 is expected to be approximately £3.9m which is above its previous expectation of between £3.5m and £3.8m, and above current market guidance of £3.65m. The Board anticipates that EBITDA for FY22 will be slightly ahead of current market expectations.

Newmark Security 44p £4.1m (NWT.L)
A provider of electronic, software, and physical security systems and installations announces its unaudited interim results for the six months ended 31 October 2022 (H1 FY23). Revenue increased 10% to £10.6m (H1 FY22: £9.7m). Gross profit margin increased by 5.7% and EBITDA increased t0 £1.1m, returning to profitability (H1 FY22 EBITDA loss: £0.03m). Human Capital Management annual subscription-based recurring revenues increased by 260 % year-on-year to £1.3m positively contributing to the profit margins. The Company expects 2023 to be a year of profitable growth.

Northcoders Group 305p £23.5m (CODE.L)
The independent provider of training programmes for software coding, provides a trading update for the year ended 31 December 2022. Unaudited financial results for the Period are in line with expectations with cash at year end was £2.8m. The group has seen continued growth in demand, with 8,852 training bootcamp applications in the Period, compared to 3,662 applications in the year to 31 December 2021, an increase of 141%. Revenue visibility for the forthcoming year currently stands at £5.4m, an increase of 79% compared to the same time last year. Contracted revenue represents 57% of the market expectation for the FY23.

Vector Capital 41.5p £18.8m (VCAP.L)
The commercial lending group that offers secured loans to property developers and investors in England & Wales, provides an update on trading for the year ended 31 December 2022. Revenue for the year is expected to be in line with market expectations at not less than £5.9m, representing year on year growth of 12% (2021: £5.3m). The Group's loan book, grew to £53.4m at 31 December 2022, an annual increase of 15.4% (2021: £46.3m). At 31 December 2022, the Group had 107 live loans (2021:79), representing an annual 35.4% increase with an average loan size of approximately £499k (2021: £586k). Despite current market conditions, the Group is able in most cases to pass on interest rate increases.

31 January 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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